5^ 


DEPARTMENT  OF  COMMERCE 

BUREAU  OF  FOREIGN  AND  DOMESTIC  COMMERCE 

PHILIP  B.  KENNEDY,  Director 


MISCELLANEOUS  SERIES— No.  88 


ECONOMIC  STUDIES  OF  COUNTRIES  DURING  THE  WAR 

COMPILED  IN  THE 

BUREAU  OF  RESEARCH  AND  STATISTICS 

WAR  TRADE  BOARD 


THE  ECONOMIC  POSITION  OF  ARGENTINA 
DURING  THE  WAR 


BY 


L.  BREWSTER  SMITH  and  HARRY  T.  COLLINGS 
Research  Assistants 

ELIZABETH  MURPHEY,  Junior  Research  Assistant 


PRXCE,  15  CENTS 

Sold  by  the  Superintetident  of  Documents,  Goveraxnent  Printing  Office; 
Washington,  D.  C. 

WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1920 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/economicpositionOOsmitrich 


DEPARTMENT  OF  COMMERCE 

BUREAU  OF  FOREIGN  AND  DOMESTIC  COMMERCE 

PHILIP  B.  KENNEDY,  Director 


MISCELLANEOUS  SERIES— No.  88 


ECONOMIC  STUDIES  OF  COUNTRIES  DURING  THE  WAR 

COMPILED  IN  THE 

BUREAU  OF  RESEARCH  AND  STATISTICS 
WAR  TRADE  BOARD 


THE  ECONOMIC  POSITION  OF  ARGENTINA 
DURING  THE  WAR 


BY 


L.  BREWSTER  SMITH  and  HARRY  T.  COLLINGS 
Research  Assistants 

ELIZABETH  MURPHEY,  Junior  Research  Assistant 


PRICE,  15  CENTS 

Sold  by  the  Superintendent  of  Documents,  Government  Printing  Office, 
Washington,  D.  C. 

WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1920 


7^^ 


CONTENTS 


Page. 

Letter  of  submittal 5 

Note  on  trade  statistics 6 

I.  Introduction 7 

Purpose  of  the  report 7 

Area,  climate,  and  topography 7 

Water  power 9 

Population 9 

Immigration  and  emigration 10 

The  labor  situation 10 

—  High  cost  of  living , 11 

II.  Agricultural  products ^ 13 

Importance  of  agriculture 13 

Chief  products 14 

Minor  crops 28 

Trade  in  agricultural  products 32 

III.  Animals  and  animal  products 34 

Importance  of  live-stock  industries 34 

Argentina's  position  in  world  meat  trade 34 

Live-stock  raising 35 

Foreign  trade  in  animal  products 37 

rV.  Forest  products 48 

Argentina  an  importer  of  lumber 48 

Location  of  timber 48 

Imports  of  lumber 50 

Construction 53 

Quebracho 53 

Quebracho  extract 54 

Firewood • 56 

^                  Conclusion 56 

V.  Minerals. . . :  . 57 

Development  of  mining  industry 57 

Petroleum 57 

Coal 60 

Wolfram 62 

Mica 62 

Other  minerals 63 

Trade  in  minerals 64 

VI.  Manufacturing  industries 67 

Development  before  the  war 67 

Manufacturing  industries  during  the  war 68 

VII.  Transportation 72 

General  situation 72 

Rivers  and  harbors 72 

Railways 73 

Automobiles 80 

Shipping  engaged  in  foreign  trade 81 

Possibilities  of  shipbuilding  or  purchase  of  ships 83 


719701 


4  CONTENTS. 

Page. 

VIII.  Argentine  foreign  trade » „  „ . » 84 

Importance  of  the  foreign  trade „ . » 84 

,^..  Changes  in  trade  during  the  war 85 

Effect  of  the  war  on  value  and  quantity  of  trade 85 

Nature  of  Argentine  trade 87 

General  trend  of  exports 87 

General  trend  of  imports 91 

Direction  of  trade 96 

Trade  with  certain  countries 102 

IX.  Finance 112 

Present  favorable  conditions 112 

^  The  monetary  system 112 

The  banking  situation 115 

Institutions  closely  connected  with  commercial  banking 118 

—The  national  debt .' 121 

Sources  of  revenue 123 

"—Foreign  investments 125 

The  balance  of  trade 128 

Probable  return  of  exchange  to  normal 131 

Bibliography 1 32 


LETTER  OF  SUBMITTAL. 


War  Trade  Board, 

Washington,  June  30,  1919. 

Sir:  There  is  submitted  herewith  a  report  on  ''The  Economic 
Position  of  Argentina  During  the  War."  This  report  is  one  of  a  series 
of  economic  studies  of  countries  during  the  war,  prepared  in  connec- 
tion with  the  general  economic  work  carried  on  in  the  Bureau  of 
Research  and  Statistics  of  the  War  Trade  Board  and  published  by 
the  Department  of  Commerce  for  general  distribution. 

The  report  is  the  work  of  Mr.  L.  Brewster  Smith  and  Mr.  Harry 
T.  Collings,  assisted  by  Miss  Elizabeth  Murphey,  with  certain  revi- 
sions and  additions  made  by  Miss  Katherine  Hodge.  In  the  revision 
of  the  report  valuable  suggestions  were  made  by  Mr.  Julius  Klein, 
of  the  Bureau  of  Foreign  and  Domestic  Commerce,  and  by  Mr.  C. 
E.  Maguire,  of  the  United  States  Treasury. 

The  report  should  be  of  especial  interest  at  this  time,  since  it  out- 
lines the  changes  in  Argentina's  industries,  trade,  and  finance  during 
the  war  and  in  many  cases  indicates  the  probable  future  trend  of  the 
economic  conditions  of  that  country. 

Respectfully  submitted. 

Karl  DeLaittre, 
Director,  Bureau  of  Research  and  Statistics. 

Hon.  Vance  McCormick, 

Chairman,  War  Trade  Board. 

5 


NOTE  ON  TRADE  STATISTICS. 

It  is  important  to  note  the  methods  used  in  Argentina  in  the  compilation  of  figures 
of  exports  and  imports  and  to  state  clearly  at  the  outset  how  these  figures  have  been 
used  in  this  study. 

Exports. — From  1864,  the  year  when  Argentina  began  compiling  statistics  of  export 
and  import  trade,  until  1891  the  figures  used  for  values  of  exports  were  those  of  the 
official  schedules  of  prices,  which  were  arbitrary  valuations  of  articles  per  unit  of 
quantity  and  which  were  not  changed  with  changing  prices  from  year  to  year.  After 
1892  this  was  modified  for  those  articles  systematically  quoted  on  the  market  on  which 
there  was  no  export  tax.  In  1906,  when  export  taxes  were  abolished,  market  prices 
were  used  for  all  commodities  for  which  quotations  were  published,  and  official 
schedules  used  for  articles  not  regularly  quoted. 

It  was  decided  in  1916  to  reorganize  the  methods  used  in  determining  values  for 
exports.  The  method  which  has  been  employed  since  January  I,  1917,  has  used 
average  quotations  of  Argentine  market  prices  at  the  port  of  embarkation.  These 
values  are  based  upon  publications  of  authorized  commercial  institutions  and,  in  the 
case  of  articles  not  quoted  by  these  bodies,  upon  systematic  investigations  by  which 
a  sufficient  number  of  quotations  are  obtained  from  sources  of  exports  to  give  satis- 
factory statistical  averages. 

The  necessity  became  evident  also  of  making  available  figures  for  preceding  years 
which  would  give  figures  more  correct  than  those  published  in  the  official  yearbooks. 
A  study  was  made  and  index  numbers  determined.  In  the  official  statistical  publi- 
cation for  the  year  1917  tables  are  included,  giving  corrected  figures  for  a  large  number 
of  commodities  for  the  years  1910  to  1916.  These  corrected  values,  referred  to  in 
official  Argentine  statistics  as  ''real  values,"  have  been  used  throughout  this  report 
except  where  it  is  expressly  stated  that  "nominal  values"  are  used. 

Imports. — Import  figures  prior  to  1917  were  based  upon  a  tariff  valuation  per  unit 
of  quantity.  These  had  been  only  slightly  altered  since  1906,  and  values  of  imports 
in  Argentine  statistics  were  consequently  very  much  too  low.  After  1917,  also,  import 
figures  are  given  in  detail  in  nominal  or  tariff  values  only.  Investigations  of  prices 
of  goods  imported  at  Buenos  Aires  are  carried  on,  however,  in  a  large  number  of 
commodities  (about  67  per  cent  of  the  value  of  all  imports)  and  index  numbers 
obtained  for  these  articles.  An  index  number  is  also  determined  for  the  total  imports. 
"Real  values"  are  given  for  168  articles  and  for  totals  based  on  the  index  numbers 
obtained .    Import  values  include  maritime  charges,  being  c .  i.  f .  at  port  of  importation. 

As  in  the  case  of  exports,  corrected  figures,  or  "real  values"  for  imports  from  1910 
to  1917  are  listed  in  "El  Comercio  Exterior  Argentine  en  1916  y  1917."  Figures  for 
value  of  imports  prior  to  1910  differ  only  slightly  from  "tariff"  or  "nominal  values." 
For  all  figures  since  1910  "real  values  "  are  used  in  this  study,  except  where  it  is  stated 
that  "nominal  values"  are  used. 

Full  explanation  of  the  methods  employed  in  obtaining  these  values  is  given  in 
"El  Comercio  Exterior  Argentine  en  1916  y  1917,  Boletin  No.  176,"  in  the  first  section 
of  the  volume  headed  "Intercambio  Econ6mico  de  la  Repdblica  1910-1917."  This 
section  is  also  published  separately  under  the  same  title,  being  the  report  of  A.  E' 
Bunge,  Director  General  de  Estadlstica  de  la  Naci6n. 


THE  ECONOMIC  POSITION  OF  ARGENTINA  DURING 

THE  WAR. 


I.  INTRODUCTION. 
PURPOSE  OF  THE  REPORT. 

It  is  the  purpose  of  this  report  to  summarize  the  economic  con- 
ditions in  Argentina  and  to  consider  in  some  detail  the  changes  in 
production  and  consumption  and  -in  industries,  trade,  and  shipping 
during  the  years  1913  to  1918.  It  is  impossible,  however,  to  deal 
extensively  with  some  phases  of  Argentina's  economic  life  in  this 
study,  owing  to  the  lack  of  data  available  at  the  present  time.  The 
labor  situation  and  industrial  development  are,  therefore,  dealt  with 
briefly. 

Argentina,  though  neutral,  has  been  profoundly  affected  by  the 
war.  It  is  a  country  dependent  upon  foreign  countries,  not  only  as 
markets  for  the  disposal  of  the  yearly  surplus  of  agricultural  and 
pastoral  products,  but  also  as  the  sources  of  the  major  portion  of 
the  manufactured  goods  needed  to  sustain  economic  life.  Argentina 
has  been  thrown  upon  itself  during  the  last  four  years  to  a  con- 
siderable extent.  The  withdrawal  of  foreign  capital  and  the  isolation 
due  to  lack  of  shipping  facilities,  especially  durmg  the  last  two  years, 
have  forced  upon  Argentina  the  necessity  of  doing  without  large 
quantities  of  essential  commodities  and  has  tended  to  stimulate  a 
degree  of  national  self-sufficiency,  which  will  doubtless  have  a  lasting 
effect  upon  the  national  life,  though  the  limitation  of  imports  forced 
by  the  war  has  also  hampered  industrial  development,  because  many 
01  the  tools  of  industry  must  also  be  imported  from  overseas, 

AREA,  CLIMATE,  AND  TOPOGRAPHY. 

Argentina  stretches  from  tropical  lands  (22°  south  latitude)  to 
the  cold  latitudes  (55°  30'  south  latitude),  and  it  has  a  coast  line 
1,  565  miles  in  length.  If  the  area  of  1,153,119  square  miles  could  be 
remolded,  it  would  more  than  cover  that  portion  of  the  United  States 
which  lies  east  of  the  Mississippi  River.  Argentina  is  a  large  country 
with  great  variations  in  climate,  but  with  a  remarkably  uniform 
topography,  except  in  the  extreme  western  part,  where  the  crest  ot 
the  Andes  forms  the  boundary.  The  almost  universal  levelness  has 
been  instrumental  in  developing  both  agricultural  industries  and 
railway  communications.  The  lack  of  ruggedness,  possibly,  has  made 
inaccessible  any  potential  supplies  of  coal  and  iron.  The  drawbacks 
to  industrial  development,  occasioned  by  the  lack  of  coal  and  iron 
resources,  may  be  lessened  if  the  rivers  of  the  moist  northern  Prov- 
inces can  be  used  for  water  power  and  for  the  transportation  of  forest 
products. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 


Capitah   -k 
Othar  im/>ortarit  cities 
yYiamc*  a/  "TirriTbries  ara 
UTtdBfli  nioC. 

A/ames  ofProvmce^ate. 
not  unc,'srlme.cL . 

Tfailroucl^    II. ~ 

m 


"^^^C»f»e~TTorrv 


Map  1.— Southern  South  America 


The  climate  greatly  influences  the  economic  position  of  the  country. 
Not  only  does  it  vary  from  the  semitropical  cotton  and  sugar  grow- 
ing region  of  the  north  to  the  cold  wool-producing  lands  of  Patagonia, 
but  there  is  also  a  great  variation  from  east  to  west.  In  a  journey 
westward  from  Buenos  Aires  to  Mendoza,  at  the  foot  of  the  Andes, 
the  traveler  experiences  climatic  changes  similar  to  those  found  in 
a  trip  in  the  United  States  from  the  cereal-growing  region  about 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


Kansas  City  to  the  irrigated  lands  about  Denver, 
finds  less  and  less  rainfall  as  he  moves  westward. 


In  each  case  he 


WATER  POWER. 


Power,  generated  on  a  commercial  scale,  is  needed  for  industrial 
plants,  and  especially  for  the  tramways  and  lighting  of  the  large  cities. 
The  largest  cities  of  Argentina  are  not  located  in  the  region  of  water 
power,  so  the  big  foreign-managed  utilities  companies  employ  elec- 
tricity, using  imported  coal  as  the  generating  force.  As  in  the  case 
of  the  railroads,  these  concerns  have  suffered  during  the  war  and  have 
turned  to  the  use  of  wood  and  native  petroleum  with  unsatisfactory 
results.  Water  power  is  greatly  needed  by  the  Republic.  Attempts 
to  utilize  this  force  have  been  made  in  the  nortnern  Provinces. 

POPULATION. 

Argentina  is  a  new  country,  with  large  area,  rich  resources,  and  a 
comparatively  small  population.  ^  In  1895  the  population  was 
3,954,911,  and  in  1914,  7,885,237,  showing  a  doubling  of  the  number 
in  20  years.  In  1914,  however,  Argentina  had  only  6.83  people  to 
the  square  mile,  as  compared  with  28.95  in  the  United  States,  379.53 
in  the  United  Kingdom,  and  673.35  in  Belgium.  As  a  result,  the 
industries  of  Argentina  tend  to  be  those  making  extensive  use^  of  the 
land  and  small  use  of  labor.  The  country  is  not  an  industrial  but 
an  agricultural  country,  as  is  usually  the  case  in  newly  populated 
lands. 
The  following  table  shows  the  population  of  the  various  Provinces 
and  their  capitals: 


Area  and  Population 

OP  Provinces,  Territories,  and  Capitals. 

1 

Federal  districts, 
Provinces,  and  Territories. 

Area 
(square 
miles). 

Popula- 
tion, 

census 
1895. 

Popula- 
tion, 

census, 
1914. 

Popula- 
tion per 
square 
mile, 
1914. 

Capital. 

Esti- 
mated 

1918. 

Federal  district: 

72 

663,854 

1,575,814 

783 

2,066,165 
899,640 
735, 472 
425,373 
347,055 
116,266 
261,678 
332,933 
277, 535 
119,252 

79,754 
100,391 
140,927 

76,631 

53,563 

19, 281 

46,274 

101,338 

28,866 

42,242 

23,065 

9,948 

2,504 

2,487 

21,886.30 

Buenos  Aires 

1,750,000 

Provinces: 

n7,777 
50,713 
66,912 
29,241 
33,535 
29,035 
55,385 
10,422 
56,502 
37,865 
37,839 
36,800 
48,302 
14,802 

11,511 
41,402 
52,  741 
56,320 
40,530 
79,805 
93,427 
109, 142 
8,299 
34,740 

921, 168 

397, 188 

351,223 

292, 019 

239,618 

81,450 

161,502 

215, 712 

116, 136 

84,251 

69,502 

90,161 

118,015 

49,713 

33,163 

4,829 

10,422 

25,914 

14,517 

9,241 

3,748 

1,058 

477 

17.54 

17.73 

10.91 

14.54 

10.34 

4.04 

4.72 

31.94 

4.91 

3.14 

2.10 

2.72 

2.91 

5.17 

4.65 
.46 
.87 

1.79 
.71 
.52 
.24 
.09 
.30 
.07 

La  Plata 

100,000 

Santa  Fe 

Santa  Fe 

48,000 

Cordoba 

100,000 

Entre  Rios 

Parana 

77,000 
25,000 

Corrientes 

Corrientes 

San  Luis 

San  Luis 

11,000 

Santiago  del  Estero 

Tucuman 

Santiago  del  Estero.... 
Tucuman 

12,000 
75,000 

64,000 
15,000 

San  Juan 

San  Juan 

LaRioja 

8,000 

Catamarca 

Catamarca 

10,000 

Salta 

Salta 

20,000 

Jujuy . .        

Juiuv 

6,000 

Territories: 

Mislones 

Posadas 

10,000 

Formosa 

Formosa 

3,000 

Chaco 

Resistencia 

3,000 

Pampa  Central 

Santa  Rosa  de  Toay... 
Neuquen 

2,000 

Neuquen 

3,000 

Rio  Negro 

Viedma                    .  . 

2,000 

Chubut 

2,000 

Santa  Cruz 

Gallegos       

2,000 

Tierra  del  Fuego 

Los  Andes 

1,000 

San   Antonio   de   los 
Cobras. 

1,000 

Total 

1,153,119 

3,954,911 

27,885,237 

6.83 

2,350,000 

1  Source:  Statesman's  Year  Book,  1918,  p.  639. 

« In  1917  the  estimated  population  was  8,574,000  (4,287,023  males  and  4,286,977  females).   0  f  these,  2,357,952 
(1,473,809  males  and  884,143  females)  were  uimaturalized  foreigners. 


10 


ECONOMIC  POSITION   OF  ARGENTINA  DURING   THE  WAR. 


IMMIGRATION   AND  EMIGRATION. 

Since  most  of  the  country  lies  within  the  seasonal  belt  of  the  Tem- 
perate Zone,  European  labor,  especially  from  the  Mediterranean 
countries,  is  attracted  constantly.  In  1917  the  estimated  popula- 
lation  was  8,574,000.  There  were  4,287,023  males,  of  whom  1,473,809 
were  foreigners;  in  other  words,  34.  3 8  per  cent,  or  approximately 
one-third,  of  the  labor  was  of  foreign  birth.  The  following  table 
shows  the  immigration  and  emigration  from  1910  to  1917: 

Immigration  and  Emigration. 


Years. 

Number  of 
immigrants. 

Number  of 
emigrants. 

Excess  of 
immigration 

(+), 

excess  of 

emigration 

1910 ..- 

310,224 

247,803 

348,570 

327,446 

135,  787 

54, 144 

40,310 

23,530 

116, 167 
142,344 
142,460 
181,056 
196,890 
118,636 
80,867 
56,268 

+194,057 
+105,459 
+206,110 
+146,390 

1911         

1912 

1913 

1914         

—  61,103 

1915 

-  64,492 

—  40,557 

1916 

1917         

—  32,738 

Grafih.  No.  1.         Argentina  —  [mmigration  and  EMiqRATiON  — 19101917. 
(000) 
37? 


300 


zzs 


I  50 


1910  1911  I9it. 

Xurnber  of  lmmi^ra.nts . 

-*• — t — + — Balance,  iix  -favor. 


1915 


191S  1916  1917 

—  /Tumb&r  oj  Emi^rAnts. 


THE  LABOR  SITUATION. 


The  chief  reason  for  the  large  emigration,  as  well  as  immigration, 
is  the  abnormally  large  demand  for  labor  during  the  harvesting 
season.  Prior  to  the  war  this  was  largely  supplied  by  laborers  from 
southern  Europe,  who  found  ^it  profitable  to  emigrate  to  Argentina 
for  this  short  period,  returning  to  their  own  country  when  the  harvest 
was  over. 

The  seasonal  nature  of  the  greater  part  of  Argentina's  labor  re- 
sults in  a  serious  problem,  which  has  been  the  concern  of  the  Gov- 
ernment for  many  years.  Although  the  country  is  one  where  labor 
is,  on  the  whole,  scarce,  owing  to  the  irregularity  of  work  and  the 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR.  11 

lack  of  organization  to  take  care  of  the  condition,  there  is  a  great  deal 
of  unemployment  at  certain  times  of  the  year,  which  always  brings 
serious  social  and  economic  conditions.  Skilled  labor  for  mdustrial 
work  is  not  abundant,  though  at  times  this  type  of  labor  is  often 
found  unemployed. 

The  war  nas  affected  the  labor  situation  in  Argentina  in  sev- 
eral ways.  In  the  first  place,  the  supply  of  foreign  labor  has  de- 
creased considerably,  as  can  be  seen  by  the  preceding  table  and  the 
graph.  The  causes  of  this  decline  are  evident.  The  economic  and 
military  demands  upon  their  citizens  by  the  European  Governments 
have  held  thesp  people  at  home  and  nave  called  home  many  who 
might  have  remained  in  Argentina. 

Internal  conditions  in  m-gentina  resulting  from  the  far-reaching 
effects  of  the  European  war  can  not  be  dealt  with  in  full  in  this  study. 
It  is  interesting  to  note,  however,  the  changes  in  the  labor  situation 
and  the  problems  which  became  acute. 

In  1914  the  first  shock  of  the  war  caused  many  industries  to  curtail 
their  output.  Industrial  laborers  were  thrown  out  of  work.  Lock- 
outs in  the  larger  cities  were  frequent,  and  the  resulting  social  condi- 
tions were  of  great  concern  to  the  Government.  Farm  labor  was 
also  more  abundant  than  the  demand  in  that  year.  In  1915,  how- 
ever, the  war  had  begun  to  stimulate  both  indus^  and  agriculture, 
and  there  was  fear  of  a  shortage  of  farm  labor.  The  same  condition 
was  feared  in  1916,  but  a  slightly  poorer  crop  than  was  expected 
resulted  again  in  a  considerable  amount  of  unemployment.  In  1917 
the  failure  of  crops  accentuated  this  condition. 

In  1918  industrial  labor  was  in  more  demand  than  ever,  and  strikes 
increased,  owing  to  the  greatly  increased  cost  of  living,  for  which 
laborers  demanded  corresponding  increases  in  wages,  and  to  the  fact 
that  the  demand  for  labor  was  in  excess  of  the  supply,  and  the 
laborer  was  so  placed  in  a  more  advantageous  position  tor  bargaining. 
The  end  of  tne  war  found  Argentina  in  a  general  state  of  unrest, 
similar  to  the  condition  sweeping  the  whole  world.  The  causes  were 
similar  to  those  in  other  countries.  The  influence  of  radical  move- 
ments in  other  parts  of  the  world  naturally  played  a  part  in  the 
development  of  this  condition.  The  strikes  which  held  up  traflic  in 
the  harbors  for  several  months  were  widely  known  throughout  the 
world,  because  they  affected  foreign  shipping  and  trade,  but  they 
were  merely  a  part  of  a  series  of  strikes  of  similar  magnitude  and 
importance.  A  detailed  study  of  the  labor  situation  would  be  nec- 
essary, however,  to  give  an  adequate  statement  of  the  situation 
dming  the  war.  The  scope  of  the  present  study  allows  only  the 
foregoing  statement  of  the  fact  that  great  labor  unrest  exists,  and 
that  its  causes  are  similar  to  those  in  other  countries.  The  holding 
of  large  tracts  of  land  by  a  few  and  the  development  of  trusts  are 
two  of  the  causes.  One  of  the  chief  causes,  however,  is  the  increased 
cost  of  living, 

fflGH   COST  OF  LIVING. 

The  cost  of  living  had  been  gradually  increasing  in  Argentina,  but 
with  the  opening  of  the  war  it  rose  by  lea^s  and  bounds.  Increased 
wages  allayed  the  discontent  at  first,  but  it  was  impossible  to  keep 
pace  with  the  growing  prices.  The  result  is  seen  in  the  strike  troubles 
of  the  past  year,  culminating  in   the  harbor  strikes.    The  Direc- 


12 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 


tor  General  of  Statistics  has  recently  stated  that  the  cost  of  living 
increased  60  per  cent  during  the  war.  The  economic  reason  under- 
lying the  transformation  is  readily  appreciated  in  the  case  of  Argen- 
tina. It  is  a  country  that  produces  a  few  staples  in  abundance;  its 
luxuries  and  many  of  the  necessities  come  from  abroad.  The  fol- 
lowing chosen  list  of  wholesale  prices  shows  the  increase  (in  United 
States  currency)  on  commodities  imported  and  on  domestic  goods 
which  are  in  demand  abroad. 

Prices  of  Certain  Commodities. 


Articles. 


per  pound. 

Sugar do... 

Olive  oil per  quart . 

Kerosene  oil per  gallon. 

Fat per  pound. 

Flour do... 


....do... 
.per  doz. 


1914 


JO.  37 
.07 
.20 

.78 

.11 
.03 


1917 


$1.39 
.10 


,96 


1918 


$1.47 

.16 

.70 

1.07 

.17 
.05 
.11 
.21 


The  last  four  items  show  the  prices  obtained  for  the  native  products. 
In  spite  of  the  price  of  meat,  which  seems  abnormally  low,  the  con- 
sumption of  meat  per  capita  in  Argentina  has  decreased,  because  the 
great  mass  can  not  afford  such  prices.  The  scarcity  of  fuel  has 
added  to  the  general  unrest. 

The  Government  has  recognized  the  acute  conditions,  and  Congress 
recently  discussed  the  following  suggestions  for  relief: 

(1)  To  establish  an  open  market  in  Buenos  Aires. 

(2)  To  have  the  ovens  in  the  Federal  penitentiary  work  to  full 
capacity  and  sell  the  surplus  at  cost  price. 

(3)  To  revoke  the  tax  on  producers  of  food  supplies. 

(4)  To  build  houses  for  workingmen. 

(5)  To  establish  a  permanent  tribunal  to  arbitrate  in  strikes. 

The  permanent  cure,  however,  depends  upon  the  ability  of  the 
Republic  to  once  more  import  cheap  foreign  goods  and  to  vary  its 
products.  Specialization,  resulting  in  large  profits,  has  made  money 
lor  the  few  and  high  prices  for  the  masses. 


n.  AGRICULTURAL  PRODUCTS. 


IMPORTANCE  OF  AGRICULTURE. 

Argentina  is,  and  will  for  long  remain,  an  agricultural  country, 
whose  principal  resources  are  cereals  and  animal  products.  The 
Repubhc  owes  its  phenomenal  progress  and  present  position  among 
nations  largely  to  pastoral  ratner  than  agncultural  products,  but 
during  recent  years  more  of  the  fertile  soil  has  been  brought  under 
cultivation,  and  the  grain  fields  are  increasing  in  importance.  Dur- 
ing the  war,  however,  animal  products,  especially  meats,  were  in 
such  great  demand  that  export  figiires  for  these  products  show  a 
greater  increase  than  those  for  agricultural  products. 


Ghaph    No.  2. 
fluLiMS  OF  GoLp  Pesos 


Soo 


Fluctu/^tions  mToJhi  Exports 

fROn    ARfteNTlNA-i;;ENTYYEARS 

i8*?8  —n  n 


400 


3oo 


2!  00 


iOO 


181^   lloo    Koi     \«io%  1961    no5    no6    1107  1«101    mo    nil      niT.  IIH     niS  (116    ni7 

1^8  no3  W08  I«?I3 

The  foreign  trade  of  Argentina  shows  great  variations  from  year 
to  year,  because  the  exports  depend  so  largely  upon  the  retimis 
from  the  agricultural  industries.  Without  a  prosperous  year  for 
cereal  production  and  stock  raising,  the  Republic  has  little  to  export; 
and  when  its  exports  are  small  imports  tend  to  be  small.  The 
harvests,  frequently  affected  by  drougnts  and  locust  plagues,  produce 
variations  in  foreign  trade,  sometimes  amounting  to  as  much  as 
$40,000,000   to   $60,000,000  above   or  below  the   normal.     Graph 

13 


14 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 


No.  2  shows  the  great  importance  of  amcultural  and  animal  products 
in  Argentina's  export  trade  during  tne  20  years,  1898-1917.  The 
influence  of  the  good  and  the  poor  crops  on  total  exports  is  clearly- 
indicated  by  the  two  curves  representmg  total  exports  and  exports 
of  agricultural  products,  which  show  almost  parallel  fluctuations. 
Animal  products,  on  the  other  hand,  show  only  slight  fluctuations 
in  the  general  tendency  to  increase,  and,  though  constituting  a  large 
percentage  of  the  export  trade,  have  not  counterbalanced  the  fluctua- 
tions in  9ie  varying  agricultural  exports. 

Argentina  has  an  area  of  about  728,680,000  acres,  of  which  about 
253,195,000  acres  may  be  used  for  agriculture  or  cattle  raising,  the 
remainder  being  mountain,  lake,  nver,  or  arid  regions.  About 
12,000,000  acres  of  the  cultivable  area  require  irrigatioi;!.  As  only 
a  smaU  portion  of  the  cultivable  land  is  under  production,  other 
factors  must  be  acting  to  prevent  expansion.  The  population  of 
Argentina  is  small,  and  only  a  small  percentage  of  its  agricultural 
products  is  used  for  home  consumption;  the  greater  part  goes  into 
the  world  markets.  Even  these  in  normal  times  are  limited  in  their 
power  to  consume;  and  for  this  reason  Argentina  must  restrict 
production  to  world  market  needs.  At  the  end  of  -the  1918  har- 
vest season  such  a  surplus  of  com  existed  that  it  was  used  as  fuel 
in  certain  regions.  On  the  other  hand,  even  if  extreme  expansion 
of  production  were  advisable,  the  Republic  would  be  unable  to  accom- 
plish this  because  of  lack  of  man  power.  During  the  war,  emigration 
surpassed  immigration  and  labor  has  become  scarcer.  The  unusual 
expense  of  importing  agricultural  machinery  during  the  war  has  also 
been  a  deterrmg  factor. 

CfflEF  PRODUCTS. 

The  following  table  shows  the  chief  agricultural  products  of 
Argentina.  The  Hst  may  be  grouped  as  follows:  (1)  Products  of 
primary  importance,  sucn  as  wheat,  maize,  oats,  and  linseed;  (2) 
commodities  of  lesser  significance,  such  as  rye,  barley,  rice,  sugar, 
tobacco,  and  cotton. 

Agricultural  Acreage  and  Production.* 


Products. 


Chief  products: 

Wheat.: 

Corn 

Linseed 

Oats 

Minor  products: 

Rye 

Barley 

Rice 

Tobacco 

Cotton 

Sugar  cane. - 


Acreage. 


1912-13      1913-14  1914-15  1915-16  1916-17 


17,088,572 
9,460,100 
4,281,325 
2,945,228 

98,553 

266,637 

8,331 

23,850 

6,916 

232,736 


16,236,644 
10,255,440 
4,394,995 
3,085,771 

227,981 
418, 295 

9,707 
36,729 

6,476 
263,549 


15,464,670 
10,381,410 
4,25.5,810 
2,867,670 

228,722 
396,435 

8,188 
37,939 

8,151 
269. 724 


16,413,150 
9,924,090 
3,998,930 
2,563,860 

211,432 

431,015 

17,401 

18,846 

9,114 

317,395 


,082,170 
,  965, 038 
,206,060 
,524,340 

179,717 
387,914 


(2) 


1  Source:    Annuaire  International  de  Statistique  Agricole,  Institut  International  d' Agriculture,  Rome, 
1915-16. 

2  NotUsted. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR.  15 

xxGRiGULruBAL  ACREAGE  AND  PRODUCTION — Continued. 


Products. 


Chief  products: 

Wheat 

Com 

Linseed 

Oats 

Minor  products: 

Rye 

Barley 

Rice 

Tobacco 

Cotton 

Sugar  cane 

Raw  cane  sugar 


Production  (metric  tons). 


1912-13  1913-14  1914-15  1915-16  1916-17 


5,100,000 
4,995,000 
1,130,000 
1,100,000 

35,900 

97,100 

0) 

8,000 

840 

2,121,660 

147.249 


3,100,000 

6,684,000 
995,000 
740,000 

85,000 
175,000 

10,129 


3,131,018 
276,140 


4,585,000 

8,260,000 

1,144,090 

717,000 

46,000 
112,000 

10,752 


3,653,331 
335,956 


4,600,000 

4,093,000 

895, 100 

1,095,528 

51,000 
140,000 

5,341 


2,416,164 
149,299 


1,911,200 

1,494,600 
101,500 
461,300 

21,800 
47,130 
(2) 


(2) 
0) 


Estimated. 


2  Not  listed. 


It  is  the  four  chief  products  which  are  important  in  export  trade 
and  which  influence  the  total  export  trade  from  year  to  year,  causing 
it  to  fluctuate,  as  ah'eady  indicated  in  graph  No.  2. 

Another  evidence  of  the  importance  of  this  group  is  the  large  area 
devoted  to  these  crops  in  the  cultivated  regions  of  the  garden  Prov- 
inces, viz,  Buenos  Aires,  Cordoba,  Santa  Fe,  Pampa  Central,  and 
Entre  Rios.  The  concentration  of  the  cultivation  to  these  Provinces 
is  explained  by  the  following  conditions:  Good  soil,  suitable  climate, 
greater  population,  and  better  transportation  facilities.  Even  in 
this  fertile  section  the  land  devoted  to  tillage  is  small  and  the  possi- 
bilities for  increased  acreage  are  very  great. 

Distribution   of  the   Principal  Crops:  Acreage  Estimates  for  1918-19.* 


Provinces. 

Wheat. 

Linseed. 

Oats. 

Acres. 
5,745,176 
4,855,601 
2,389,499 
2,379,615 
1,  in,  970 
494,209 

Acres. 

614,425 

753,668 

1,304,711 

66,718 

642,471 

37,066 

Acres. 

2,214,055 

135,907 

74, 131 

222,394 

247,104 

86,487 

Cordoba    .         .      .. 

Santa  Fe 

Pampa  Central        .....                   .. 

Entre  Rios 

Other  Pro\inces 

Total  1918-19 

16,976,070 
17,864,412 
16,088,967 
16,420,083 

3,419,059 
3,233,606 
3,207,415 
4,000,616 

2,980,078 
3,200,002 
2,525,406 
2,564,939 

Total  1917-18 

Total  1916-17 

Total  1915-16 

1  Source:  Report  from  Consul  General  Robertson,  Feb.  21, 1918. 
Note.— Com  statistics  not  given. 


Yield  op  the  Principal  Crops 

,  1917-18. 

1 

Provinces. 

Wheat. 

Linseed. 

Oats. 

Corn. 

Buenos  Aires  

Metric  tons. 

1,200,000 

1,596,000 

1,045,000 

535,000 

405,000 

250,000 

Metric  tons. 

131,200 
204,000 
321,000 

23,800 
130,000 

20,000 

Metric  tons. 

676,000 
60,000 
75,000 

100,000 
80,000 
40,000 

Metric  tons. 

2,140,000 

280,000 

1,700,000 

19,000 

56,000 

140,000 

Cordoba 

Santa  Fe 

Pampa  Central 

Entre  Rios 

Other  Provinces 

Total  

5,031,000 

830,000 

1,021,000 

4,335,000 

1  Source:  Report  from  Consul  General  Robertson,  Apr.  16, 1918. 
124236°— 20 2 


16 


ECONOMIC  POSITIOIS"   OF  ARGENTINA  DURING  THE  WAR. 


Map  2.— Agricultural  acreage. 
WHEAT. 


The  wheat  crop  is  important  not  only  to  Argentina,  but  it  plays  a 
large  part  in  supplying  those  countries  in  the  world  which  do  not 
produce  sufficient  supplies  for  their  own  consumption. 

The  following  table,  showing  the  chief  producmg  coimtries,  gives 
Argentina's  position  as  a  wheat  producer: 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 
World  Production  op  Wheat:  Average,  1911-13.^ 


17 


Regions. 

Acreage, 

Bushels. 

Percent. 

World 

266,920,000 

3,796,908,000 

100 

United  States 

48,514,000 
62,151,000 
30,410,000 
16,347,000 
12,393,000 
11,038,000 
11,778,000 
16,530,000 
57,759,000 

704,995,000 
636,525,000 
369,612,000 
324,137,000 
247,141,000 
228,933,000 
190,840,000 
166,521,000 
908,204,000 

19 

17 

India         .           

10 

9 

6 

Canada 

Italy            

6 
5 

Arpfpntina                                            .         .      . .............. 

4 

24 

1  Source:  Reference  Handbook  of  Food  Statistics  in  Relation  to  the  "War,  United  States  Food  Adminis- 
tration, 1918,  p.l2. 

Not  until  we  study  the  world  export  figures,  however,  do  we  see 
Argentina's  position  in  the  world  wheat  trade. 

World  Exports   of  Wheat  and   Wheat  'Flour:    Average   Yearly   Exports 

1911-1913.^ 


Regions. 

Net  exports 
(bushels). 

Percent- 
age. 

World 

636,357,000 

100 

Russia 

122,883,000 

113,767,000 

110,258,000 

100,844,000 

58,963,000 

53,705,000 

52,154,000 

10,476,000 

13^307^000 

• 

19 

United  States  

18 

Canada              .            .  .      .  -  -  • --- - - 

17 

16 

British  India                  

9 

9 

Australia.          

8 

2 

2 

1  Source:  Reference  Handbook  of  Food  Statistics  in  Relation  to  the  War,  United  States  Food  Adminis- 
tration, 1918. 

Although  in  the  class  with  Italy  as  a  relatively  small  producer 
(4.42  per  cent),  yet,  due  to  the  low  domestic  consumption,  Argentina 
does  one-sixth  of  the  world ^s  wheat  exporting.  Exports  in  normal 
years  go  to  northwestern  Europe  and  constitute  one  of  the  large 
factors  in  the  payment  of  interest  on  British  investments  in  Argentina. 
A  lesser  quantity  is  sold  to  the  South  American  countries,  Brazil  in 
particular. 

The  conditions  of  climate  and  soil  under  which  wheat  is  raised  are 
similar  to  those  in  the  United  States.  Winter  wheat  is  sown  in  April 
and  spring  wheat  in  August.  December  is  the  greatest  harvesting 
month.  The  tables  and  map  on  pages  15  and  16  show  localization  of 
wheat  in  the  Provinces  of  Buenos  Aires,  Cordoba,  Santa  Fe,  Entre 
Rios,  and  the  Territory  of  Pampa  Central. 

WHEAT   SITUATION   DURING  THE    WAR. 

The  wheat  situation  during  the  years  1914-1918  was  influenced  by 
the  conditions,  resulting  from  the  war,  of  demand  for  wheat  and  flour 
and  of  the  shipping  situation.  The  following  table  shows  first  the  acre- 
^age  planted  during  the  war  years  and  indicates  in  a  measure  the  ex- 
pectations of  wheat  growers  of  marketing  their  crops.  Figures  for  pro- 


18 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE   WAR. 


duction  and  yield  per  acre  show  the  success  of  the  crop,  while  exports 
indicate  the  demand  for  Argentina's  wheat  as  affected  by  the  cutting 
off  of  the  German  market,  by  increased  demands  of  allied  and  neutral 
nations  in  Europe,  and  by  decreased  shipping  facilities. 


Argentine  Wheat  Statistics.^ 


Years. 

Acreage. 

Production 
(bushels). 

Yield  per 
acre. 

Net  exports 

of  wheat  and 

wheat  flour  in 

terms  of 

bushels  of 

wheat. 

Apparent 

consumption 

(bushels). 

1911-13,  average       

16,530,000 
16,243,000 
15,471,000 
16,420,000 
16,089,000 
3  17,574,000 

166,521,000 
113,904,000 
169,166,000 
172,620,000 
70,224,000 
••'184,856,000 

10 
7 
11 
11 
4 

3  11 

100,844,000 
39,235,000 
98,045,000 
91,523,000 
2  39,658,092 
*  78, 294, 000 

65,677,000 
74  669  000 

1914 

1915 

7l'l2l'000 

1916. 

81  097  000 

1917 

30,565,908 

1918 

1  Source:  Reference  Handbook  of  Food  Statistics  in  Relation  to  the  War,  United  States  Food  Adminis- 
tration, 1918. 

2  Estimated  (not  found  in  source)  from  official  export  figures. 

3  Preliminary  estimate. 

*  For  nine  months,  from  oflBcial  figures. 

These  figures,  together  with  the  following  table  of  prices  compiled 
by  the  Argentine  Government,^  furnish  the  basic  facts  from  which 
to  study  the  effects  of  the  war  on  the  Argentine  wheat  situation. 

Prices  or  Wheat  in  Argentina. 


Years. 

Gold 

pesos 

per  ton. 

United 
States 
dollars. 

1910 

38.33 
35.29 
37.21 
36.49 
37.90 
52.81 
42.10 
64.79 

36.99 

1911 

34.05 

1912               

35.90 

1913 

35.21 

1914 

36.51 

1915 

50.96 

1916 

40.63 

1917 

62.52 

These  are  average  f.  o.  b.  prices  at  Argentine  ports  for  the  years 
given  and  indicate  the  general  price  at  which  the  crop  was  exported. 

Although  the  yield  per  acre  in  1914  was  not  as  good  as  the  average, 
and  the  resulting  production  lower,  the  greatly  reduced  exports  in 
that  year  were  due  not  to  the  of  lack  of  wheat  to  export,  but  to  the 
first  shock  of  the  war  and  the  tendency  of  the  European  Allies  to 
purchase  a  larger  share  of  their  imports  from  nearer  markets.  The 
effect  of  this  situation  is  reflected  in  the  slightly  decreased  acreage  in 
1915.  The  good  crop  with  the  large  production  in  1915,  however, 
was  in  demand,  and  exports  returned  almost  to  their  pre-war  level, 
with  the  price  also  considerably  higher  than  in  the  preceding  year.  As 
would  be  expected,  growers  were  encouraged  to  plant  a  larger  acreage 
in  1916,  and  the  production  for  that  year  was  higher  than  in  1915. 
The  effect  of  submarine  warfare  and  the  scarcity  of  shipping  began 
to  show  themselves  in  that  year,  however,  and  exports  fell  slightly, 

1  El  Comercio  Exterior  Argentino,  Boletln  176,  p.  153. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR.  19 

causing  the  price  to  go  down  again  almost  to  the  1914  level.  The 
natural  effect  of  the  low  price  is  reflected  in  the  slightly  decreased 
acreage  planted  in  1917. 

The  wheat  situation  in  Argentina  in  1917  was  entirely  different 
from  all  expectations.  Bad  weather  conditions  damaged  the  crops, 
causing  the  average  yield  per  acre  to  drop  from  1 1  bushels,  as  in  the 
two  preceding  years,  to  4  bushels,  and  decreasing  production  from 
about  172,620,000  bushels,  which  might  be  expected  from  the  acre- 
age sown,  to  only  70,224,000,  or  less  tnan  one-half  the  expected  crop. 
In  the  meantime,  although  the  problem  of  supplying  ships  to  bring 
products  from  long  distances  was  becoming  more  and  more  serious 
for  the  allied  countries,  Argentine  wheat  was  in  demand.  Prices 
rose  to  a  high  level.  The  Argentine  Government,  fearing  a  shortage 
of  wheat  serious  enough  to  endanger  the  necessary  consumption  of 
the  country,  put  an  embargo  on  the  exportation  oi  wheat  in  March, 
1917.  Production  figures  indicate  the  prudence  of  this  action. 
It  resulted,  however,  in  a  surplus  of  200,000  to  300,000  tons,  which 
was  carried  over  to  the  next  season's  supply,  owing  to  the  high  price  of 
wheat  in  Argentina  and  the  consequent  decreased  consumption. 
Exports  in  1917  amounted  to  only  39,658,092  bushels. 

FOOD  AGREEMENTS  WITH  THE  ALLIES. 

At  the  end  of  1917  the  Allied  Governments  began  negotiations 
for  the  purchase  of  Argentine  cereals.  In  January,  1918,  an  agree- 
ment was  signed  by  which  2,500,000  tons  of  cereals  were  to  be  pur- 
chased, including  wheat,  maize,  linseed,  and  oats. 

The  following  paragraphs  sum  up  the  terms  of  the  agreement  made 
in  January,  1918,  between  Argentina  on  the  one  hand  and  Great 
Britain  and  France  on  the  other: 

The  British  and  French  Governments  shall  buy  in  the  Argentine  Republic  the  sur- 
plus of  wheat  and  other  cereals  to  an  approximate  amount  of  two  million  five  hundred 
thousand  (2,500,000)  tons,  undertaking  to  export  the  same  before  November  1,  1918. 
The  British  and  French  Governments  will  pay  a  minimum  price  of  twelve  dollars 
and  fifty  cents  paper  currency  for  every  hundred  (100)  kilos  of  wheat,  seven  dollars 
paper  currency  for  every  hundred  kilos  of  oats,  and  fifteen  dollars  paper  currency  for 
every  hundred  kilos  of  linseed,  all  of  good  quality,  f .  o.  b. 

The  Argentine  Government  shall  open  a  credit  in  favor  of  the  British  Government 
up  to  the  smn  of  one  hundred  million  dollars  Argentine  gold  or  its  equivalent  in  paper 
currency,  and  a  similar  credit  for  a  similar  amount  to  the  French  Government.  The 
amounts  drawn  under  these  credits  shall  carry  interest  at  5  per  cent  per  annum. 

The  credits  opened  shall  be  utilized  for  the  purchase  of  Argentine  cereals,  and  may 
also  be  used  for  the  acquisition  of  other  produce  of  the  country. 

The  British  and  French  Governments  shall  deposit  in  the  respective  Argentine 
Legations  the  acknowledgments  of  the  amounts  drawn  under  the  above-mentioned 
credits. 

The  acreage  planted  in  wheat  in  1918  was  larger  than  in  any 
previous  year,  and  the  good  crop  resulted  in  a  production  of  184,856,- 
000  bushels.  The  greatly  increased  acreage  was  the  natural  reaction 
from  the  Argentine  wheat  situation  of  1917,  but  it  proved  to  be  greater 
than  was  warranted  by  the  world  situation,  and  a  large  surplus 
remained  imexported  after  the  Allies  had  supplied  ships  to  carry 
the  amount  which  they  required  and  which  they  had  agreed  to  pur- 
chase. Although  exports  mcreased  greatly  in  1918,  as  is  shown  by 
the  figures  for  the  first  nine  months  (the  latest  available),  in  the  fall 
of  1918  the  situation  was  serious.     The  following  statement,  sub- 


20 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


mitted  to  the  Minister  of  Agriculture  by  Dr.  Lahitte,  Director  of  Rural 
Economy  and  Statistics,  snows  the  situation  on  September  1,  1918:  ^ 

Tons. 

Harvest 5,  970, 000 

Requirements  for  consumption  and  seed 1, 800, 000 

Balance 4, 170, 000 

Exported  to  July  30 2,  234, 000 

Surplus  available  for  export H,  936. 000 

The  statement  goes  on  to  say  that  by  September  only  54  per  cent 
of  the  current  crop  had  been  exported  (as  against  90  per  cent  normally 
exported  by  that  time),  and  since  the  cereals  which  the  Allied  Gov- 
ernments had  agreed  to  purchase  had  already  been  shipped  and 
were  included  in  the  amount,  shipping  space  would  probably  nob  be 
provided  for  much  more.  The  usual  amount  had  already  been  shipped 
to  Brazil.  An  amount  of  500,000  tons  allotted  to  Spain  and  Switz- 
erland had  not  been  exported,  but  even  if  shipping  space  were  pro- 
vided for  this  amount  there  would  remain  a  large  surplus. 

The  problem  of  a  large  surplus  was  acute,  because  of  the  lack 
of  facilities  for  storing  tne  grain.  It  is  the  usual  practice  for  the 
farmers  to  haul  the  grain  to  the  railroads,  where  it  remains  under 
tarpaulin  until  it  can  be  moved  to  the  larger  centers,  such  as  Buenos 
Aires  and  Rosario,  where  a  few  grain  elevators  are  to  be  found. 

Argentina's  production  of  wheat  is  capable  of  great  expansion.  Her 
ability  to  market  her  production,  however,  is  limited  by  the  world 
supply  and  demand. 

The  following  table  of  Argentina's  export  trade  in  wheat  during 
the  war  shows  increased  exports  to  the  European  AUies  and  neutrals 
in  1915  and  1916,  and  the  decreases  in  1917.  The  large  exports  to 
Germany  and  Belgium  in  1912  and  1913  disappeared  by  1915.  The 
increased  exports  in  the  first  nine  months  of  1918  to  the  United 
Kingdom  are  striking. 

Export  of  Wheat. ^ 


Countries. 

1912 

1913 

1914 

1915 

1916 

1917 

1918 
(9  months) 

Belgium 

Metric  tons 

327,932 

346, 157 

43,481 

9,485 

550,690 

161,607 

145,715 

601 

Metric  tons 
212,602 
411,342 
189,151 

Metric  tons 

90, 188 

265,743 

20,275 

781 

200,069 

28,016 

11,931 

Metric  tons 

Metric  tons 

Metric  tons 

Metric  tens 

Brazil 

France 

298,365 

174,714 

28,694 

384,931 

424,554 

444,216 

11,116 

201,351 

171,620 
130,290 

237,535 

163,800 

28,089 

1,353,855 

United  States 

United  Kingdom 

Germany 

571,987 

85,740 

253,311 

145, 255 

Italv 

367,486 

7,072 

92,622 

23,977 

5,105 

27, 155 

13,090 

81,423 

1,006,880 

202,094 
4;  456 

66,966 

61,620 
3,862 

South  Africa 

Australia. .  

Spain 

1,188 

6.219 

173,926 

15,754 

190,  620 

655,  781 

19,606 

1,6S2 

66,179 
12, 413 

145, 128 
60,740 
68,729 

653,891 

12,065 
16,217 

159,518 

Denmark  . 

Netherlands 

237,477 

6,520 

32, 280 

729, 130 

52, 594 

Sweden 

30,906 
166, 788 
195,  721 

17,313 

68,792 
677. 235 

other  countries 

23,830 
285,466 

To"orders" 

Total 

2,629,056 

2, 812, 149 

980, 525 

2,511,514 

2,294,867 

935, 828 

2,771,619 

1  Source:  Review  of  the  River  Plate,  September  13, 1918,  Vol.  L,  No.  139,  p.  b  ''65. 

2  Or  46  per  cent  of  the  exportable  surplus  of  the  current  year's  wheat  harvest. 
'Source:  El  Comercio  Exterior  Argentino,  1912-1918. 

Note.— Total  exports  for  1918, 3, 927,719  metric  tons. 


ECONOMIC  POSITION  OF  ARGENTINA  DtTKING  THE  WAE. 


21 


FLOUR   MILLING. 


Although  a  large  percentage  of  Argentina's  wheat  is  exported 
unmilled,  flour  milling  is  second  only  to  meat  refrigerating  among 
the  manufacturing  industries.  Thirty  years  ago  the  Kepubiic  could 
not  provide  sufficient  flour  for  its  own  consumption,  being  obliged 
to  import  this  article  from  abroad.  In  1901,  when  the  port  of  Buenos 
Aires  was  being  built,  it  was  decided  to  use  the  waste  lands  of  the  port, 
reclaimed  from  the  River  Plate,  to  establish  flour-mill  and  grain- 
elevator  industries.  As  a  residt  there  are  many  mills  at  Buenos  Aires 
andRosario. 

In  1901  some  Argentine,  Belgian,  and  British  capitalists  established 
a  group  of  mills  in  Argentina,  and  now  have  four  mills  in  Buenos  Aires 
and  two  in  Avellaneda;  they  are  running  at  full  capacity  mills  in 
Cordoba,  San  Francisco  (Province  of  Cordoba),  Nogoya  (Province  of 
Entre  Rios),  Tres  Arroyos,  Tandil,  and  Coronel  Pringles  (Province 
of  Buenos  Aires),  these  being  the  first  of  a  series  of  mills  to  be  built  in 
the  principal  wheat  zones  of  the  Republic.  The  principal  brand  of 
flour  milled  by  this  company  is  the  ^'Favorita,''  which  has  an  estab- 
lished reputation.  They  have  built  the  elevators  called  Rio  de  la 
Plata,  where  they  can  store  100,000  tons  of  cereals.  The  company  has 
at  times  employed  1,500  laborers,  pajing  $135,100  monthly,  without 
taking  into  consideration  the  salaries  of  a  great  number  of  other 
ernployees. 

The  millers  had  to  struggle  to  attain  the  increased  development  of 
their  industry,  owing  to  the  fact  that  the  Government  of  Brazil,  wish- 
ing to  favor  its  own  national  flour-milling  industry,  created  differen- 
tial customs  tariffs  for  wheat  and  flour  and  accorded  privileges 
for  the  importation  of  North  American  flour  to  the  prejudice  of 
Argentine  nour. 

The  following  table  shows  the  details  of  Argentina's  export  trade 
in  wheat  flour  since  1913: 

Exports  of  Flour.^ 


Countries. 

1912 

1913 

1914 

1915 

1916 

1917 

9  months, 
1918. 

Belgium 

Metric 
tons. 

Metric 
tons. 
193 

99,869 

274 

2,096 

9,286 

267 

810 

11,105 

748 

Metric 
tons. 

254 

58,202 

710 

200 

Metric 
tons. 

Metric 
tons. 

Metric 
tons. 

Metric 
tons. 

Brazil 

111,278 

1,274 

833 

77 

4,452 

165 

1,171 

11,359 

971 

55,907 
12,905 

68,375 
67,972 

77, 196 
20,256 

79,571 
510 

France 

Germany 

Italy 

5,112 
16,264 

2 

United  Kingdom 

1,495 
335 
232 

5,359 

538 

3,244 

507 

7 

United  States 

1  461 

Netherlands 

10,413 
15,159 

289 

7,819 

29,920 

308 

other  countries 

13,948 
751 

12,844 
1,662 

To  "orders" 

Total 

131,580 

124,649 

67,325 

116,049 

144,290 

112,465 

119,598 

1  Source:  El  Comercio  Exterior  Argentine,  1912-1918. 
Note.— Total  exports  for  1918  were  126,990  tons. 


22 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 


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ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 


23 


CORN. 

* 

Argentina's  position  in  the  world  production  and  exportation  of 
corn  is  even  more  strikingly  one  of  ''producer  for  foreign  markets" 
than  in  the  case  of  wheat.  The  pre-war  production  of  Argentina's 
corn  crop  amounted  to  4.52  per  cent  of  the  world  production  and 
its  exports  to  46.46  per  cent  of  the  total  net  exports  of  the  world,  as 
is  shown  in  the  two  following  tables: 

Pre-War  Corn  Production  and  Acreage  in  Principal  Corn-Producinq 

Countries.  ^ 

(Three-year  pre-war  average.) 


Countries. 


Acreage. 


Production 
(bushelrj). 


Percentage 

of  world 
production. 


World 

United  States... 
i\ustria-Hungary 

Mexico 

Argentina 

Roumania 

Italy 

other  countries. . 


2  168,079,000 


3  3,838,650,000 


100 


106,243,000 
8,494,000 
13,375,000 
8,662,000 
5, 187, 000 
3,964,000 

2  22,194,000 


2,701,074,000 
212,648,000 
190,000,000 
173,389,000 
109,765,000 
100, 245, 000 

3  351,509,000 


70 


1  Source:  Reference  Handbook  of  Food  Statistics  in  Relation  to  the  War,  United  States  Food  Adminis- 
tration, 1918,  p.  15. 

2  Exclusive  of  Portugal. 

» Exclusive  of  British  India. 

Argentina's  Pre-War  Position  as  a  Corn  Exporter.^ 
(Three-year  pre-war  average.) 


Countries. 

Net  exports, 
(bushels;. 

Per  cent 
of  world 

corn 
exports. 

World 

276,077,000 

100 

Argentina 

128,275,000 
47,164,000 
43,034,000 
34,917,000 
10,370,000 
12,317,000 

46 

Roamania 

17 

United  States 

16 

Russia 

1Q 

Bulgaria 

4 

Other  countries 

1 

1  Source:  Reference  Handbook  of  Food  Statistics  in  Relation  to  the  War,  United  States  Food  Adminis- 
tration, 1918,  p.  71. 

The  production  of  corn  fluctuates  from  year  to  year,  depending 
largely  upon  weather  conditions.  During  the  war  Argentina's  yearly 
production  varied  from  338,235,000  bushels  in  1915  to  58,839,000 
bushels,  which  was  the  crop  of  1917.  Exports  tend  to  foUow  fluc- 
tuations in  production  in  normal  times.  The  scarcity  of  shipping, 
however,  was  an  important  factor  affecting  exports  of  corn  dur- 
ing the  war.  The  table  following  shows  production  and  net  ex- 
ports since  1911. 


24  ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE   WAR. 

Corn  Statistics.  ^ 


Years. 

Acreage. 

Production. 

Yield 
per  acre. 

Net  exports. 

Apparent 
consumption. 

1911-1913  (average) 

Acres. 

8,622,000 
10,260,000 
10,386,000 

9,928,000 

8,969,000 



Bushels. 
173,389,000 
263,135,000 
338,235,000 
161, 133, 000 
58,839,000 
U73,400,000 

Bushels. 
20 
26 
33 
16 
7 

Bushels. 

128,275,000 

139,563,000 

170,623,000 

113,229,000 

3  35,000,000 

Bushels. 
2  45,209,000 
123,572,000 
167,612,000 
47,904,000 
23,619,000 
<  140, 000, 000 

1915 

1916 

1917           ...       .          

1918 

J  Source:  Reference  Handbook  of  Food  Statistics  in  Relation  to  the  War,  United  States  Food  Adminis- 
tration, 1918,  pp.  15,  16,  73,  74. 
2  Normal  consumption. 

8  Source  of  this  figure:  El  Comercio  Exterior  Argentino,  Boletfn  146. 
*  Estimated. 

The  consumption  of  corn  is  comparatively  small  in  Argentina. 
The  greater  part  of  the  crop  is  exported  to  European  countries.  Dur- 
ing tne  war  the  limited  shipping  facilities  and  the  preference  given  to 
wheat  and  linseed  resulted  in  an  acute  situation.  One  of  the  most 
troublesome  problems  that  the  war  has  brought  to  Argentina  is  the 
question  of  the  disposal  of  the  corn  Gi'op.  In  1917-18  the  Republic 
produced  4,335,000  metric  tons  and  exported  during  the  first  seven 
months  of  1918  only  202,700  tons.  Dr.  Lahitte,  Director  of  Rural 
Economy  and  Statistics,  estimated  early  in  1918  that  the  corn  re- 
quired for  home  consumption  and  seed  ranged  between  1,700,000 
and  2,000,000  metric  tons,  so  that  unless  new  uses  were  found  for 
the  grain  there  would  be  a  surplus  of  approximately  2,000,000  tons 
for  export.  This  large  suiplus  remains  from  the  1917-18  crop,  and 
the  present  crop  is  believed  to  be  above  the  average.  The  estimated 
total  available  for  1919  was  3,550,000  metric  tons.  At  the  close  of 
the  year  1918  the  price  of  corn  was  quoted  at  63  cents  a  bushel 
in  Argentine  centers,  while  it  commanded  $1.55  to  $1.78  in  New 
York  City. 

In  Rosario,  where  hogs  are  not  raised  to  any  extent  and  corn  is  not 
popular  as  a  human  food,  the  price  has  reached  such  a  low  point  that 
corn  will  probably  continue  to  be  used  as  fuel  in  place  of  the  more 
expensive  coal.  Lack  of  storage  facilities  and  scarcity  of  bagging 
have  added  to  the  difficulties  of  properly  disposing  of  the  surplus. 
The  fact  that  the  Argentine  com  surplus  for  export  in  good  years 
equals  46  per  cent  of  the  world  export  trade  in  that  grain  makes  the 
outcome  problematic.  Other  corn-producing  regions  are  also  heavy 
consumers,  but  this  is  not  so  in  the  case  of  Argentina.  The  solution 
of  the  problem  lies  in  transforming  the  corn  into  other  products, 
such  as  alcohol,  starch,  glucose,  and  especially  in  producing  beef  and 
pork.  The  quantity  that  could  be  consumed  in  the  production  of 
alcohol  is  negligible.  Heavy  consumption  must  depend  upon  the 
live-stock  industries.  The  existence  of  extensive  and  accessible 
grazing  lands  makes  it  unprofitable  to  raise  many  cattle  on  stock 
farms.  Hogs  can  be  advantageously  raised  on  corn,  and  the  frigori- 
ficos  (refrigerating  plants)  are  maintaining  an  active  campaign  to 
promote  swine  production. 

Like  the  other  cereals,  production  of  corn  in  Argentina  declined  in 
1916,  and  markedly  so  in  1917,  due  to  poor  weather  and  the  expected 
shortage  in  shipping.  To-day,  however,  an  unmanageable  surplus 
exists.     Nevertheless,  with  returning  normal  conditions  the  industry 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


25 


will  continue  to  expand  as  it  did  before  the  war,  for  Argentine  maize 
is  able  to  withstand  competitive  prices  in  the  world  markets,  due  to 
the  ease  of  production.  Moreover,  the  growing  ho^-raising  business 
and  the  more  intensive  use  of  the  land  for  cattle  raising  wm  in  time 
create  a  domestic  demand. 

The  following  table  shows  the  details  of  Argentina's  export  trade 
in  corn  for  the  years  1912-1918: 

Export  of  Corn.  ^ 


Covintries. 

1912 

1913 

1914 

1915 

1916 

1917 

1918 
(9months). 

Tons. 

274,520 

10,254 

178,  740 

345, 236 

317, 208 

190,653 

18,346 

70,008 

18,081 

106,901 

9,869 

94,400 

3,201,021 

Tons. 
275,445 

15, 176 
190,  431 
502, 549 
276,366 
119, 177 

85, 495 
127,271 

19,936 

125,832 

9,397 

111,650 

2,948,226 

Tons. 

99,967 

6,082 

129,560 

390,026 

101,273 

108)132 

155, 164 

64,603 

24,707 

67,968 

19,922 

62,635 

2,312,241 

Tons. 

Tons. 

Tons. 

Tons. 

Brazil 

5,678 
147,622 
750,312 

2,131 
221,742 
519,998 

68 
62,031 
183,622 

502 

France 

23,932 
105, 552 

United  Kingdom 

Germany 

Italy 

154,221 
98,244 
75,993 
24,094 

272,558 

30,308 

30,490 

2,741,074 

27,309 
64,921 
78,275 
108,547 
325,424 
25,536 
92,127 
1,407,900 

54, 147 
48,021 
16,668 
28,584 
62,337 
6,367 
120,532 
311,562 

11, 459 

United  States 

29  449 

Spain    . .           

11,717 

Denmark 

Netherlands 

Sweden 

13,541 
49,  555 
97,336 

To  "orders"... 

Total 

4,835,237 

4,806,951 

3,542,280 

4,330,594 

2,873,910 

893,939 

342,953 

Note. 


1  Source:  EI  Comercio  Exterior  Argentine,  1912-1918. 
-Exports  for  calendar  year  1918,  631,976  metric  tons. 


OATS. 


As  in  the  case  of  the  other  cereals,  the  production  of  oats  is  variable, 
being  affected  by  the  frequent  adverse  weather  conditions.  The 
largest  acreage  is  in  the'  Province  of  Buenos  Aires,  with  great  possi- 
bihties  of  extension  to  the  southwest.  Although  Argentina  produced 
only  1.5  per  cent  of  the  world's  supply  in  the  years  preceding  the 
war,  it  practically  supplied  one-third  of  the  world  export  trade  in 
oats,  shipping  abroad  a  quantity  seven  times  as  large  as  did  the 
United  States.  The  war  caused  a  30  per  cent  decrease  in  its  busi- 
ness. The  after-war  prospects  are  good,  because  Argentina  has  well- 
established  connections  with  northwestern  Europe,  which  is  the 
region  purchasing  a  large  per  cent  of  its  exports  of  this  commodity. 
The  foUowuig  tables  show  its  pre-war  and  war  production  and  ex- 
ports: 

Statistics  for  Oats.  ^ 


Years. 

Acerage. 

Production. 

Yield 
per  acre. 

Net  exports. 

Apparent 
consumption. 

1911-1913  (average) 

Acres. 

2,491,000 

3,087,000 

2,869,000 

2,565,000 

2,525,000 

3,199,000 

Bushels. 
64,048,000 
50,981,000 
49,397,000 
75,280,000 
31,781,000 

<  70, 347, 000 

Bushels. 
26 
17 
17 
29 
13 
22 

Bushels. 
52,693,000 
24,324.000 
40,807,000 
55,397,000 

3  18,673,000 

Bushels. 
2  11,355,000 

1914 ^ 

26,657,000 

1915 

8,590,000 
19,883,000 
13,108,000 

1916 

1917...    . 

1918 

1  Source:  Reference  Handbook  of  Food  Statistics  in  Relation  to  the  War,  United  States  Food  Adminis- 
tration, 1918,  pp.  18-20,  75-77. 

2  Normal  consumption. 

3  Calculated  from  official  statistics,  El  Comercio  Exterior  Argentine,  Boletin  176. 
*  Estimated. 


26         ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

Export  op  Oats.  ^ 


Countries. 

1912 

1913 

1914 

1915 

1916 

1917 

1918. 
(9  months). 

Belgium 

Tons. 

115,282 

568 

43,981 

65, 419 

134,205 

342,832 

1,258 

82.  718 

34,063 

75,706 

Tons. 
68,007 
5,657 

102,898 
36,663 
95,  785 

314,  554 
2,032 

161,857 
19,649 
82,642 

Tons. 

34,036 
3,944 
4,549 
7,283 

17,882 

156, 772 

220 

.54,404 
2,600 

72,020 

Tons. 

Tons. 

Tons. 

Tons. 

Brazil 

27 
47, 243 

84 
408,773 

158 
212,920 

164 

49  201 

Germany 

Italy     ... 

88,522 

204, 798 

3,169 

6,501 

684 

241,853 

134, 797 
179, 586 
855 
10,402 
32,635 
37,311 

767 
31,847 

618 

United  Kingdom 

313,622 

United  States 

Netherlands 

Other  countries 

21,  458 
4,563 

21,413 
14,087 

To  "  orders  " 

Total. 

896,032 

889,744 

353,700 

592,  797 
28, 

804, 443 
193 

271, 713 

399,105 

1  Source:  EI  Comercio  Exterior  Argentino,  1912-1918. 
Note.— Total  exports  1918  were  535,919  metric  tons. 

LINSEED.^ 

Argentina  has  a  bigger  area  devoted  to  linseed  than  have  the  other 
large  producing  countries.     Approximate  acreages  are  as  follows: 

Acres. 

Argentina 3, 000, 000 

British  India 2, 800, 000 

United  States 2,000,000 

Canada 1, 000, 000 

In  these  countries  the  plant  is  used  for  the  oil  content  and  not,  as 
in  several  countries  in  Europe,  for  the  fiber. 

Linseed,  Area  and  Production.* 


Crop  years. 

Area. 

Production. 

Exports, 

calendar 

year. 

1912-13 

Acres. 
4,281,325 
4,394,995 
4,255,810 
3,998,930 
3,206,060 
3,232,242 
<  3, 417, 616 

Metric  tons. 

1,082,625 
979,272 

1,126,000 
997,000 
102,000 

2  562,500 

6  705,000 

Metric  tons. 

1,016,732 

841,590 

981  192 

1913-14 

1914-15 

1915-16     

638  654 

1916-17 

140'  168 

1917-18. 

3355,886 
6  6^,000 

1918-19                                                 .              

1  Source:  Latin  American  Circular  No.  52,  February,  1919,  Department  of  Commerce,  Bureau  of  Foreign 
and  Domestic  Commerce. 

2  The  official  estimate  for  the  total  1917-18  crop  was  placed  at  this  figure  in  October,  1918.    The  total 
exportable  surplus  was  estimated  at  410,000  tons. 

3  To  Nov.  21, 1918. 

*  Ihis  estimate  of  the  area  was  made  in  October,  1918. 
6  OflBcial  estimate  in  January,  1919. 

The  principal  Provinces  producing  linseed  are  listed  in  the  follow- 
ing table  with  the  acres  planted  to  linseed  in  each : 


Provinces. 

1918-19  crop 
(acres). 

Provinces. 

1918-19  crop 
(acres). 

Sante  Fe     

1,304,160 
753,350 
642,200 
514, 165 

Pampa  Central 

66,690 

Cordoba 

Other  Provinces 

37,050 

Total 

Buenos  Aires    .             

3,417,615 

1  Special  reference:  Latin  American  Circular  No.  52,  Feb.  3,  1919,  Bureau  of  Foreign  and  Domestic 
Commerce,  Washington,  D.  C. 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE  WAR. 


27 


The  figures  in  the  table  on  area  and  production  show  that  the  acre- 
age decreased  during  the  war,  due  to  the  difficulty  of  obtaining  cargo 
space.  The  exceptionally  poor  yield  in  1916-17  was  caused  by  ad- 
verse climatic  conditions.  In  1918,  however,  185,000  additional 
acres  were  planted,  in  the  belief  that  the  Canadian  and  domestic 
fields  could  not  supply  the  huge  war  demands  of  the  United  States. 
The  crop,  therefore,  was  larger  than  in  recent  years.  Shipping 
scarcity,  however,  prevented  adequate  marketing,  and  the  possibility 
of  disposing  of  the  surplus  was  a  cause  for  worry  to  the  industry, 
inasmuch  as  more  than  75  per  cent  of  the  crop  is  usually  exported 
in  the  seed  form.  The  estimate  of  the  exportable  surplus  in  1919 
was  679,000  metric  tons.  This  quantity  is  very  large  when  compared 
with  the  exports  of  342,974  metric  tons  for  the  10  months  ending 
October  31,  1918. 

An  attempt  is  being  made  to  crush  the  seed  in  Argentina,  thereby 
lessening  the  cargo  space  required.  Not  only  would  more  of  the  oil  be 
utilized  in  the  Republic  if  the  price  was  lowered,  but  the  oil  cake  is 
a  profitable  commodity  for  export.  ^  The  inability  to  obtain  crushing 
machinery  and  the  transformation  of  some  of  the  linseed-oil  machinery 
into  edible-oil  crushers  have  hindered  the  growth  of  the  industry. 
The  fact  that  the  oil  cake  is  not  used  locally,  and  that  containers 
are  expensive,  also  prevents  fuller  development.  Early  in  1918 
five  firms,  aU  in  Buenos  Aires,  were  engaged  in  the  production  of 
linseed  oil.  The  bulk  of  the  output  is  shipped  to  neighboring  coun- 
tries. 

With  the  restoration  of  shipping  facilities  the  possibility  for  the 
foreign  sale  of  Argentine  linseed  seems  brighter,  especially  in  the 
market  of  the  United  States,  where  great  quantities  of  paints  are 
required  for  the  increased  merchant  marine  and  for  buildings  which 
have  gone  unpainted  during  the  war,  due  to  the  high  cost  of  linseed 
oil.  The  following  tables  show  the  great  decrease  in  exports  of  linseed 
and  an  increase  in  exports  of  linseed  oil  during  the  war. 

Export  of  Linseed.^ 


Countries. 

1912 

1913 

1914 

1915 

1916 

1917 

1918  (6 
months). 

Brazil 

Tons. 

2,787 

Tons. 
753 
15 
1,185 

Tons. 
277 

Tons. 
142 

Tons. 

404 

425 

17,157 

3,953 

206,592 

1,499 

2,156 

7,290 

128,464 

972 

89, 779 

36,632 

Tens. 
599 
252 
9,646 
19,078 
71,785 
15,913 

Tons. 
10 

Chile 

311 

Denmark 

766 

308 

2,035 

21,397 

6,588 

18,222 

80,759 

6,271 

2,999 
245,701 

8,001 
18.162 

7;  623 
105,998 

1,436 
204,048 

2,776 

Spain.    .         

343 

United  States 

France 

24,350 

18,214 

2,774 

7  547 

40,133 

4,512 
36,659 
11,386 
13,343 
71,632 

197, 182 
2  259 

Italy 

Norway 

3,162 
11,039 

Netherlands 

Portugal 

55,694 

3,255 

57,284 

230,853 

72,508 

240,551 
7,819 
130, 725 
295,780 
202,372 

239, 873 
6,032 

64,222 
317,656 

83,455 

4,197 

Sweden 

Belgium 

To  "orders" 

378,964 
71 

144,513 

78 

4,655 
982 

19  937 

Other  countries . . 

3|515 

Total 

515,399 

1,016,732 
2  191,508 

841,590 
2  77,542 

981,192 

639,914 

141,308 

3  246,213 

Germany 

1  Source:  El  Comercio  Exterior  Argentine,  1912-1918  (6  months). 

2  Included  above  in  "Other  countries." 

3  Total  exports,  1918,  390,318  metric  tons. 


28  ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

Linseed-Oil  Trade.  ^ 


Years. 

Production 
(metric 
tons). 

Exports 
(metric 
tons). 

Imports 
(metric 
tons). 

Imports  to 

Argentina 

from 

United 

States 

(gallons). 

1912 

435 
517 
282 
164 

(2) 

(2) 

1,140 

1913 

2,923 
2,353 
2,621 
4,130 
35,000 

50 

1914 

13 

659 

1,124 

1,525 

1,321 
2,035 
5,694 
6,635 
3  494 

1915                                                          

1916 

1917 

1918  . 

1  Source:  Bureau  of  Foreign  and  Domestic  Commerce,  Latin  American  Circular  No.  52,  Feb.  3, 1919. 

2  Detailed  statistics  of  these  imports  are  not  yet  available. 
« Estimated  production. 

MINOR  CROPS. 

RICE. 

In  spite  of  the  abundance  of  other  cereal  crops  and  the  distant 
source  of  the  imported  rice,  the  per  capita  consumption  in  Argentina 
averages  10  to  15  pounds.  The  production,  which  had  been  increas- 
ing, was  hastened  by  the  war,  and  the  hope  is  expressed  that  the  Re- 
public may  become  self-supporting.  Most  of  the  rice  is  produced  in 
the  warmer  northern  Provinces,  especially  Tucuman,  Santa  Fe,  and 
Misiones.  Before  the  war  the  outside  supply  came  from  the  Dutch 
and  British  Far  East  possessions,  from  Italy,  and  from  Japan.  The 
control  of  shipping  by  the  AUies  caused  much  of  this  trade  to  be 
abandoned,  so  we  have  seen  in  the  past  few  years  larger  imports  from 
Brazil,  the  United  States,  and  Japan. 

Imports  op  Rice.^ 


Countries. 

1911 

1912 

1913 

1914 

1915 

1916 

1917 

1918  (6 
months). 

Italy 

Tons. 

22,462 

13,471 

275 

Tons. 
30,488 
11,006 

148 

Tons. 

23,844 

12,107 
5,626 
3,388 

10,865 

Tons. 

23,974 

5,586 

584 

10 

4,884 

1,043 

2,175 

Tons. 

2,193 
12,291 
19,073 

2,841 

Tons. 
(^) 

Tons. 

Tons. 

(2) 

British  possessions 

Spain 

United  States 

1,221 

18,444 

* 

Netherlands 

2,328 
1,661 
3,019 

2,431 

996 

1,828 

193 
10, 731 

other  countries 

4,677 

Total. 

43,216 

46,897 

60,507 

38,256 

47,322 

33,255 

40,244 

12,928 

1  Source:  El  Comercio  Exterior  Argentino,  1912-1918  (6  months). 


2  Statistics  not  available. 


RYE   AND   BARLEY. 


Both  of  these  crops  are  unimportant  commercially.  The  produc- 
tion of  rye  is  less  than  15,000,000  bushels,  and  the  exports  amount  to 
less  than  1  per  cent  of  the  world  export  trade.  During  the  war  the 
exports  were  reduced  until  they  became  negligible  in  1918. 


SUGAR. 


Sugar  has  been  produced  in  Argentina  for  over  a  century.  It  is 
grown  in  the  northern  Provinces,  especially  in  Tucuman  and  Jujuy, 
where  the  warm  climate  is  fairly  well  adapted  to  the  raising  of  sugar 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE   WAR. 


29 


cane.  Sugar  beets  are  not  raised  in  any  part  of  South  America,  the 
whole  production  of  sugar  being  from  sugar  cane.  The  crop  has  not 
been  sufficient  to  meet  the  needs  of  Argentina's  consumption  demands 
in  the  past,  except  during  the  two  years  1915  and  1916,  when  the 
crop  was  not  only  sufficient  to  supply  the  domestic  needs,  but  also  to 
provide  for  a  net  exportable  surplus  of  58,180  and  53,800  metric  tons, 
respectively.  The  production  fell,  however,  in  1916  and  1917,  and 
imports  again  exceeded  exports.  Graph  No.  3  shows  the  variation 
in  production  and  consumption  from  1911  to  1917. 


GnAT»  H 


No.  3. 


PBorocTioir  Am  cohsuhptioh  of  suoab  ih  i:aa2aTisi. 


— 

Prodxiotlon 

mt 

Het 

Appai^nt 

I 

Exports 

Coasmnption 

1911 

146,509 

51,834 

200,343 

1912 

180,092 

29,973 

- 

210,065 

1913 

147,249 

75,322 

- 

222,571 

1914 

276,140 

- 

58,180 

217,959 

1915 

335,956 

- 

53,800 

282,156 

1916 

149,299 

30,122 

-  ' 

179,421 

1917 

88,076* 

160,125 

- 

248,202 

Soxiroet  Imports  and  Experts 
trca  Bl  Coinneroio  Exterior. 
Frodxujtlozx  for  harroBt 
years  from  Interoatloaal 
Institute  of  Borne, Consiggqp- 
tioa  oaicTJlated  from  fig- 
tires  glTen. 

•Tomqulst  -  BtiBiness  Condi- 
tions in  Argentine  -  Btd. 
142,  Aug.  31,  1918. 


T^^^Pfl^*^"  "^  '^""« 


PBDl>DCtIOH 
-  -  -  -    COHSDMPTIOH 
t  4  4  4     HBT  IlIPOBZS 
X  z  z  z    SBI  SSP0BI8 


1»17 


Sugar  plantations  suffered  from  the  frost  dmng  the  cold  winter  of 
1917  and  the  subsequent  great  heat.  Tucuman,  from  which  a  sugar 
production  of  140,000  to  150,000  tons  was  expected,  supplied  only 
80,000  to  90,000  tons,  or  less  than  one-third  of  the  crop  of  1915.  As 
a  result  of  the  poor  sugar  harvest  there  has  been  a  great  rise  in  prices. 
In  the  wholesale  trade  the  price  of  sugar  has  been  $3.14,  S3.23,  and 


30  ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 

$3.31  per  10  kilos,  showing  an  upward  tendency.  The  production  of 
the  1918  crop,  however,  was  good.  The  cutting  of  the  cane  began  in 
May,  and  it  is  estimated  that  the  harvest  was  from  170,000  to  190,000 
tons. 

The  sugar  crop,  being  one  which  could  be  entirely  consumed  in  the 
country,  remained  practically  undisturbed  by  the  shipping  situation. 
The  war,  however,  affected  the  industry  in  the  matter  of  labor,  which 
cost  considerably  more  and  which  was  relatively  scarce. 

The  frequently  recurring  bad  weather  and  the  resulting  damage  to 
the  sugar-cane  crop  has  caused  the  introduction  of  a  cane  with  greater 
resistance  to  these  climatic  conditions,  known  as  the  ''Java  cane." 
It  is  expected  that  the  adoption  of  this  variety  will  tend  to  stabilize 
production  in  the  near  future,  and  it  is  probable  that  Argentina  will 
become  self-sufficient  in  sugar  production  and  may  even  become 
a  regular  exporter  before  many  years. 

SUGAR   FACTORIES. 

The  sugar-refining  industry  began  to  be  of  significance  toward  the 
middle  of  the  nineteenth  century,  when  it  was  established  in  Tucu- 
man.  It  developed  gradually,  but  it  is  only  during  the  last  10 
years  that  it  has  spread  to  any  considerable  extent.  Considering 
aU  of  the  established  sugar  mills,  there  are  probably  not  fewer 
than  40  of  first-class  importance  working  to-day,  and  of  these  fully 
27  are  located  in  the  one  Province  of  Tucuman.  There  are  three  in 
Jujuy,  one  in  Formosa,  and  Rve  in  the  Chaco. 

This  is  an  industry  representing  the  utilization,  directly  or  indi- 
rectly, of  a  capital  of  not  less  than  $73,497,500.  To  aid  this  business, 
the  National  Government  built  the  first  narrow-gauge  railroad  from 
Cordoba  to  Tucuman  in  1874  and  extended  it  to  Salta  and  Jujuy  by 
1891.  The  extension  of  the  Central  Argentine  Railroad  from  San- 
chales  and  of  the  French  Fives-Lille  Company  Railroad  to  Tucuman 
was  made  in  1890-1892  in  order  to  make  these  roads  carriers  of  the 
sugar.  The  nation  has  endured  high  prices  necessary  for  develop- 
ment of  this  industry. 

In  spite  of  the  assistance  rendered  by  the  National  Government  in 
the  building  of  the  narrow-gauge  road  mentioned  above,  a  serious  bar 
to  export  business  still  exists  in  the  great  distance  which  divides  the 
productive  area  from  the  ports  at  which  ocean  steamers  congregate 
in  search  of  freight.  The  prevailing  railroad  rates  are  very  moderate, 
however,  averaging  little  more  than  the  equivalent  of  1  cent 
per  ton-mile,  so  that  further  economies  in  transportation  can  not 
reasonably  be  expected.  The  industry  will  certainly  continue  to 
expand,  however,  because  of  needs  of  the  increased  population  of  the 
country. 

The  normal  factory  output  of  about  250,000  tons  is  produced  75 
per  cent  in  Tucuman,  20  per  cent  in  Salta  and  Jujuy,  and-5  per  cent 
in  the  Provinces  of  Santa  Fe,  the  Argentine  Chaco,  and  the  Province 
of  Corrientes.  The  most  economic  type  of  sugar  factory  is  that  which 
crushes  1,000  tons  of  cane  in  a  long  day.  The  market  of  the  country 
accepts  only  the  whitest  sugar. 

The  machinery  used  is  imported  from  Great  Britain,  France,  Ger- 
many, the  Netherlands,  and  America.  For  elegance  in  appearance 
and^ first-class  workmanship  the  French  plant  ranks  highest;  the  Scotch 
designers  secure  first  position  in  practical  application  of  scientific 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE  WAR. 


31 


methods  to  serviceable  material;  and  Glasgow  hydro-extractors  hold 
the  field.  In  cane  handling  the  American  Hoist  &  Derrick  Co. 
remains  unchallenged  in  providing  the  most  efficient  plant  at  the 
least  initial  cost.  The  German  machinery  owes  its  acceptance  to  its 
cheapness  and  the  accommodating  terms  of  payment  under  which 
it  is  sold. 

COTTON. 

Cotton  production  is  decidedly  in  the  experimental  stage.  The 
Government  is  interested  in  fostering  its  increase,  as  is  shown  by  the 
offer  of  the  Provincial  Museum  in  Salta  to  give  free  samples  of  the 
seed,  but  the  land  suitable  is  situated  in  the  hot  semi  tropical  Provinces 
of  the  north;  especially  in  Chaco.     The  area  of  possible  cultivation 


.Graph   No.  4- 


MunoMS  or 
METf^ic  Tons 


EXP0RT5    OF    Pf?INClPAL 

Agricultural     Products 

Z  3  4  5-  € 


LINSE  EO 
HAIZF     ^    WHEAT 


)8?8t  I5o^ 


1903-1507 


I509-I9IZ 


I?I3-I9I7 


is  very  large,  being,  in  fact,  as  large  as  that  in  the  United  States. 
The  many  drawbacks  are  stated  in  Commerce  Reports  of  June  7,  1918, 
as  follows: 

The  raising  of  cotton  in  Argentina  is  not  without  attendant  difficulties.  The  Terri- 
tory of  Chaco  lies  in  the  north  central  part  of  the  Republic,  in  the  warmest  part  of  the 
country.  It  is  a  wild  and  unsettled  and  largely  unexplored  tract,  partly  timbered 
and  partly  prairie.  Living  conditions  are  of  the  Worst;  practically  all  accommoda- 
tions must  be  taken  with  the  settler  who  goes  there  to  live.  Transportation  is  at 
present  mostly  confined  to  traffic  on  the  rivers. 

The  crop  of  the  Territory  of  Chaco,  which  is  the  principal  producer, 
amounted  to  3,500  metric  tons  in  1918. 


GRAPES. 


The  center  of  the  grape  industry  lies  in  the  Province  of  Mendoza, 
due  west  from  Buenos  Aires  at  the  base  of  the  Andes.     Dry  through- 


124236°— 20- 


32 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 


out  the  year,  the  melting  snows  from  the  mountains  make  produc- 
tion possible  by  means  of  irrigation.  The  quality  of  the  Argentine 
wines  is  excellent,  but  they  lack  the  reputation  of  those  produced  in 
Europe.  During  the  war  the  exports  to  her  neighbors,  Uruguay, 
Paraguay,  and  Brazil,  have  increased.  The  heavy  imports  of  foreign 
wines  in  normal  times  show  the  extent  of  the  local  market.  Two  by- 
products of  the  grape  industry  are  becoming  articles  of  commerce, 
viz,  grape  sugar  (argols,  or  wdne  lees)  deposited  by  the  grape  juice, 
which  is  known  in  trade  as  cream  of  tartar,  and  oil  pressed  from  the 
seed.  A  new  company,  largely  financed  by  Americans,  has  located 
near  Mendoza  (1918)  and  purchases  seeds  from  the  near-by  vineries 
for  crushing. 

TRADE  IN  AGRICULTURAL  PRODUCTS. 

The  following  table  shows  the  export  trade  in  the  chief  agricultural 
products  during  the  last  20  years: 

Exports  of  Principal  Agricultural  Products.^ 


Year. 

Corn. 

Linseed. 

Wlicat. 

Oats. 

Bran. 

Fiour. 

1898 

Metric 

tons. 

717, 105 
1,116,276 

713,248 
1,112,290 
1, 192,  829 

2,104,384 
2,469.548 
2, 222,  289 
2,  693,  739 
1.276,732 

1,711,804 
2,273,412 
2,660,225 
125, 185 
4,835,237 

4,806,951 
3, 542, 280 
4,330,594 
2,873,910 
893,9.39 

342.953 

Metric 
tons. 
158,904 
217,713 
223, 257 
338, 828 
340,937 

593. 601 
880, 541 
654.  792 
538, 496 
763,  736 

1,055,650 
887, 222 
604, 877 
415, 805 
515,399 

1,016,732 
841,590 
981, 192 
639,914 
141,308 

324,471 

Metric 

tons. 

645, 161 
1,713,429 
1,929,676 

904,289 

644,908 

1,681,327 
2,304,724 
2, 868, 281 
2,247,988 
2,680,802 

3,636,294 
2, 514, 130 
1, 888,  592 
2,285,951 
2, 629, 056 

2,812,14^ 

980,  525 

2,511,514 

2,  294,  876 

935,828 

2,771,619 

Metric 
tons. 
1,107 
5,367 
7,619 
2,225 
19,842 

26,245 
29,156 
17, 167 
51, 661 
143,566 

440,041 
421,352 
370,948 
511,3.89 
896,032 

889, 744 
353,700 
592.  797 
804,443 
271,713 

399,105 

Metric 
tons. 
52,935 
78,  8^0 
73,314 
92,630 

104, 677 

132, 192 
154,456 
176,664 
178,517 
209, 125 

208,309 
207,238 
250, 777 
214,  (i34 
325,  226 

274,058 

230,934 

177. 661 

29,035 

19,872 

1,931 

Metric 
tons. 
31,933 

1899 

59,464 

1900 

51,203 

1901 

71, 742 

1902.                                           

39,040 
71,980 

1903.                          

1904 

107,298 

1905 

144, 760 

1906 

128, 998 

1907 

127,499 

1908 

113,500 

1909 

116,487 

1910. 

115,408 

1911 

1912. . 

118,486 
131,580 

124,649 

1913 

1914 

67,325 

1915 

116,049 

1916..                                  

144,290 

1917 

112,466 

19183 

119, 598 

1  Source:  El  Comerclo  Exterior  Argentine,  Boleiln  179,  p.  99. 

2  Fir.st  nine  months. 

The  great  variations  in  the  exports  of  corn,  linseed,  and  w^heat  are 
shown — for  example,  the  small  wheat  exports  in  1901,  1902,  and 
1903,  also  in  1914;  the  corn  exports  in  1900  and  1911;  and  the  differ- 
ence between  exports  of  linseed  in  1912  and  in  1913. 

Graph  No.  4,  giving  five-year  averages,  shows  the  general  tendency 
of  corn,  linseed,  and  wheat  exports  to  increase,  and  the  beginning  of 
oats  in  the  period  1908-1912  as  an  important  export. 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE   WAR.  33 

Exports  of  Principal  Aohiculturat.  Products:  Five-Ybar  Averages. 


Years. 

f'orn. 

lyinsecd. 

^Vheat. 

Oals. 

Bran. 

Flour. 

1898-1902          

Metric  tons. 

907,349 

2.153,338 

2,321,172 

3,289,534 

Metric  tons. 

■  255,927 

686,233 

695,  790 

724, 147 

Metric  tons. 
1,167,492 
2,356,624 
2, 589, 804 
1,906,978 

Metric  tons. 

7,232 

53,559 

527,952 

582,479 

Metric  tons. 

80,489 

170, 190 

241,236 

146,312 

Metric  tons. 
50,676 
116  107 

1903-1907 

1908-1912 

119,092 
112,956 

1913-1917 

METRIC  Tons 


Effect    of  the    V/Af?  on  the 

EXP0/?T5    OF    /IgRICULTURAL    PRODUCTS 


Note.— The  bar  representing  exports  in  the  first  nine  months  of  1918  is  three-fourths  the  width  of  bars 
representing  whole  years.  The  length  of  the  bar  is  extended  by  one-third,  so  that  the  total  area  represents 
the  true  exports  during  the  nine  months,  while  the  length  gives  an  easier  comparison  with  former  years, 
since  it  would  be  equivalent  to  exports  for  the  year  if  exports  during  the  last  three  months  were  equal  to 
one-tlxird  of  the  amount  exported  in  the  first  nine  months. 

Graph  No.  5  represents  metric  tons  of  agricultural  products  ex- 
ported during  the  war  period.  The  decrease  in  1914  indicates  the 
first  shock  of  the  war.  By  1915  exports  of  all  the  important  products 
had  picked  up  again,  in  1916  the  scarcity  of  shipping  limited 
exports,  especially  of  corn,  wheat  exports  being  cut  comparatively 
slightly  and  exports  of  oats  increasing.  The  great  decrease  in  1917 
was  due,  in  the  case  of  corn,  to  the  scarcity  of  snipping,  corn  not  being 
a  commodity  important  enough  to  the  Allies  to  warrant  the  use  of 
the  limited  supply  of  ships.  The  year  1917  was  a  poor  crop  year,  as 
previously  stated,  and  wheat  production  was  very  low  in  Argen- 
tina. The  good  crop  of  1918  supplied  many  tons  to  the  allied  coim- 
tries,  while  a  large  surplus  of  corn  accumulated  in  Argentina  and 
remained  unshipped. 

Agricultural  products  which  are  imported  in  considerable  quanti- 
ties are  rice,  sugar  (during  deficiency  years),  coffee,  tea,  cocoa, 
fruits,  and  tobacco. 


ni.  ANIMALS  AND  ANIMAL  PRODUCTS. 
IMPORTANCE   OF  LIVE-STOCK  INDUSTRIES. 

Cattle  and  sheep  raising  have  been  the  most  important  industries 
in  Argentina  for  many  years,  contributing  from  31  to  68  per  cent  of 
the  value  of  the  export  trade  every  year  since  1898.  Like  all  new 
countries,  relatively^  undeveloped  in  manufacturing  and  sparselv 
populated,  Argentina  is  able  to  produce  a  large  surplus  of  foodstuffs 
and  other  animal  and  agricultural  products  and  will  continue  to  do  so 
for  many  years  in  the  future. 

The  graph  and  table  on  page  42  show  the  importance  of  animal 
products  in  Argentine  export  trade  during  the  last  20  years. 

ARGENTINA'S  POSITION  IN  WORLD  MEAT  TRADE. 

The  preceding  pages  have  shown  that  Argentina's  production  of 
wheat  and  maize,  though  smaller  than  that  of  some  other  countries, 
provides  a  large  share  of  the  world's  export  surplus  of  these  staple 
commodities.  The  same  condition  exists  with  reference  to  Argen- 
tina's live-stock  figures  and  its  meat  exports.  The  following  three 
tables  show  Argentina's  position  as  a  producer  of  the  three  chief  meat 
animals : 

Argentina's  Prb-War  Position  as  a  Cattle  Raiser.^ 


oun  tries. 


Date  of 
census 
quoted. 


Number  of 

cattle. 


10. 


British  India 

United  States 

European  Russia  and  Poland 

Brazil 

Argentina 

Germany 

Austria-Himgary,  including  Croatia  and  Slavonia. 

France 

United  Kingdom 

Australia 


1914 

1913 

Dec,  1913 

June  1,  1914 

Dec,  1913 

1910-11 

1914 

1914 

1913 


56,592,000 
37,165,000 
30,705,000 
25,867,000 
20,874,000 
16,479,000 
14,788,000 
12,145,000 
11,484,000 


1  Source:  Handbook  of  Food  Statistics  in  Relation  to  the  War,  United  States  Food  Administrationt 
1918,  p.  56. 

Argentina's  Position  in  Sheep  Raising.^ 


Coimtrics. 

Date. 

Number  of 
sheep. 

1.  Australia.           ..                          .                                 ... 

Dec.  31,1915 
Jan.      1,1917 
June    1, 1914 

1914 
Dec.  31,1915 
Jan.    31,1917 
June    4,1917 

69,706,000 
48,483,000 
43,225,000 
37,240,000 

2 .  United  States 

4.  Russia 

5.  South  Africa 

31,434,000 

6.  New  Zealand .         

24,753,000 

7.  United  Kingdom 

24,026,000 

Sotarce:  Yearbook  of  U.  S.  Department  of  Agriculture,  1917. 


34 


ECONOMIC   POSITION   OF  ARGENTINA  DURING  THE  WAR.  35 

Argentina's  Pre-War  Position  as  a  Producer  of  SwineJ 


Countries. 


Number  of 
swine. 


1914 

Dec,  1913 

Dec,  1913 

1910-11 

1913 

1914 

1913 

Argentina I  June,  1914 


1.  United  States. 

2. 

3. 

4. 

5. 

6. 


Germany 

Brazil 

Austria-Hungary,  Including  Croatia-Slavonia. 

Russia  (European)  and  Poland 

United  Kingdom 


7.  Canada. 


58,933 

25, 592 

18,399 

14,013 

12,487 

3,940 

3,488 

2,901 


1  Source:  Handbook  of  Food  Statistics  in  Relation  to  the  War,  United  States  Food  Administration,  1918 

Note. — Argentine  exports  of  hog  products  have  been  comparatively  small  in  the  past.    It  is  probable- 
they  will  become  a  more  important  item  in  her  meat  export  trade  in  the  future. 

As  an  exporter  of  meats  and  meat  fats,  however,  Argentina  ranks 
first  among  the  countries  of  the  world. 

Argentina's  Position  as  a  Meat  Exporter.^ 
[Thousands  of  pounds.] 


Coimtries. 

1914 

1915 

1916 

1917 

Argentina 

1,207,649 

8  1,0.53,404 

218,348 

2,372 

1,196,964 

1,152,368 

291,303 

21,180 

1,427,665 

1,509,539 

233,756 

93,214 

1,663,440 

United  states  2... 

1,553,997 

305,300 

Brazil.                                                        

188,164 

1  Holmes:  Meat  Situation  in  the  United  States;  U.  S.  Department  of  Agriculture,  Report  No.  109,  Oflace 
of  the  Secretary. 

2  Net  exports  for  fiscal  year. 
«  Average  1912-1914. 

As  an  exporter  of  wool,  Argentina  is  surpassed  only  by  Australia. 
LIVE-STOCK  RAISING. 


AREAS. 


(Unlike  the  production  of  food  crops,  which  has  been  restricted  to 
certain  districts,  the  raising  of  live  stock  has  been  carried  on  in  each 
of  the  Provinces  and  Territories,  as  shown  in  the  census  of  1914. 
Nevertheless,  this  industry  is  centered  in  certain  districts.  The 
Provinces  of  Buenos  Aires,  Santa  Fe,  Entre  Rios,  Corrientes,  and 
Cordoba  together  raised  82  per  cent  of  the  cattle  •  Buenos  Aires  45 
per  cent  of  the  sheep  and  50  per  cent  of  the  swine.]  The  accompany- 
mg  tables  show  the  Argentine  cattle  situation.        ^ 

The  world  cattle  statistics  of  recent  years  show  an  increase  smaller 
proportionally  than  the  growth  of  population.  This  is  not  the  case 
in  Argentina.  Its  large  area  and  small  population  make  it  a  source 
of  food  supply.  For  the  next  few  years,  however,  exports  of  meat 
products  will  decrease  slightly,  because  more  live  stock  has  been 
slaughtered  recently  than  the  industry  can  bear. 


36  ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE   WAR. 

Head  of  Live  Stock. 


Animals. 

Census  of 
1908.1 

Census  of 
1913.1 

Estimate, 
1918.2 

Cattle 

29,116,625 

67,211,754 

1,403,591 

3,945,086 

7,531,376 

465,037 

30,796,000 
81,485,000 
3,197,000 
4,564,000 
9,366,000 
584,000 

25,866,763 
43,225,452 
2,900,585 
4,325,280 
8  323  815 

Sheep 

Swine 

Goats 

Horses 

Mules 

'565' 069 

Total 

109,673,669 

129,992,000 

85,206,964 

1  Source:  Annuaire  International  de  Statistique  Agricole,  1915-16,  Rome,  pp.  240, 241. 

2  Source:  Bunge,  Riqueza  y  Renta,  p.  59. 

Distribution  op  Live  Stock,  1918.^ 


Regions. 

Cattle. 

Regions. 

Sheep. 

Regions. 

_ 

Swine. 

Buenos  Aires 

Corrientes 

9,090,536 
3, 543, 395 
3,179,260 
2,540,313 
2,334,372 

5, 178, 887 

Buenos  Aires 

Entre  Rios 

18, 776, 260 
4,304,305 
3,940,616 
2,802,282 
2,348,584 
2,282,823 
2,047,037 
6,723,545 

43,225,452 

Buenos  Aires 

1,394,042 
474,326 
333,793 
112,007 

Santa  Fe 

Santa  Cruz..  . 

Cordoba 

Cordoba.. 

Rio  Negro... 

Entre  Rios 

Entre  Rios 

Other 

PaTTipa... 

Chubut 

Other 

Other 

586,417 

Total 

Total 

Total.- 

25,866,763 

2,900,585 

Source:  Bunge,  Riqueza  y  Renta,  p.  59. 


CATTLE. 


Argentina  is  surpassed  only  by  British  India,  the  United  States, 
Brazil,  and  Russia  in  the  number  of  cattle  raised.  There  was  a 
considerable  decrease  in  the  number  of  live  stock  in  Argentina  during 
the  war,  which  was  caused  by  the  high  prices  obtained  for  the 
products  and  the  resulting  tendency  to  sacrifice  good  breeding  material 
at  the  slaughterhouses.  Such  a  condition  is  especially  unfortunate 
in  Argentina,  inasmuch  as  the  Republic  has  had  such  a  strenuous 
period  of  40  or  more  years  trying  to  develop  its  tough,  bony,  native 
stock  into  an  edible  product.  To-day  the  live-stock  people  take  an 
interest  in  the  breeds,  and  at  the  annual  Palermo  live-stock  show 
much  pride  is  taken  in  exhibiting  the  cattle.  Until  1915  England 
practically  dominated  the  import  trade  in  pedigreed  stock.  During 
the  years  1911-1914  more  than  12,000  head  were  derived  from  that 
source.  Among  these  the  shorthorns  and  the  Herefords  predomi- 
nated. In  the  past  three  years  the  American  Durham  shorthorn 
has  become  a  favorite. 

Sections  of  Argentina  are  undergoing  the  same  changes  in  methods 
of  cattle  raising  as  those  experienced  in  the  United  States.  '■  In  the 
regions  where  imported  breeds  are  found  the  ranching  system  has 
been  replaced  by  stock  farms,  with  alfalfa  as  the  fodder.  This  trans- 
formation has  been  caused  by  smaller  holdings  and  because  more  care 
is  devoted  to  the  higher-valued  animals.  In  the  neighborhood  of 
Buenos  Aires  there  are  large  dairy  herds. 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE  WAR.  37 


SHEEP. 


Argentina  at  the  present  time  is  surpassed  by  Australia  and  the 
United  States  in  the  number  of  sheep  raised.  In  the  years  before 
agricultural  crops  had  assumed  such  a  position  of  importance  live- 
stock production  was  the  leading  industry,  even  in  the  garden  Prov- 
inces of  Buenos  Aires,  Santa  Fe,  and  Entre  Rios.  The  stability  of 
the  sheep-raising  industry  is  shown  in  the  figures  for  1918,  which 
give  the  Province  of  Buenos  Aires  18,776,260  sheep,  45  per  cent  of  the 
total.  The  sheep  of  these  northern  Provinces  are  meat  producers, 
although  the  original  stock  furnished  the  ^'criollo'^  wool  used  for 
carpets.  Pedigreed  stock  has  been  imported,  especiaUv  the  Ram- 
bouillets  and  the  Lincolns.  Mutton  exports,  compared  with  beef, 
are  relatively  small,  owing  in  part  to  the  fact  that  Australia  and  New 
Zealand  have  such  well-established  connections  for  the  sale  of  this 
prpduct  in  western  Europe. 

(The  varied  climate  of  Argentina  furnishes  an  adaptable  region 
for  every  breed.  In  the  southern^  Territories  of  Santa  Cruz,  Kio 
Negro,  and  Chubut — too  cold  for  agriculture — ^wool  is  produced  ex- 
tensively. Along  the  coast  and  river  valleys  and  near  the  base  of  the 
Andes  land  is  available  only  in  the  elevated  regions,  which  afford 
summer  grazing  but  poor  winter  conditions.  The  Government  is 
investigating  the  huge  grants  of  land  in  this  section.  As  a  result, 
there  may  be  a  redistribution,  and  the  pioneer  settler  may  find  new 
opportunities  in  wool  production  in  this  region.", 

SWINE. 

The  raising  of  hogs  has  never  been  popular  in  the  Republic,  yet  the 
war  statistics  show  a  smaller  relative  decrease  in  the  number  than  in 
the  case  of  other  animals,  f  The  industry  will  probably  grow  rapidly, 
because  the  hogs  not  only  Coffer  a  salable  commodity,  but  suggest  a 
method  of  utilizing  the  surplus  of  the  corn  crop.  Armour's  equip- 
ment for  handling  1,000  head  of  swine  daily  may  be  an  inducement 
for  large  production.  \ 

FOREIGN  TRADE  IN  ANIMAL  PRODUCTS. 

Animal  products,  which  figure  in  Argentina's  trade,  are  of  six  classes 
as  follows :  Live  animals ;  frozen,  chiUed,  or  preserved  (canned)  meats ; 
dairy  products;  hides;  wool;  and  minor  by-products,  such  as  tallow, 
margarine,  bones,  etc. 

Cattle  and  sheep  raising  in  Argentina  have  been  carried  on  from  the 
first,  chiefly  for  the  products  which  have  figured  largely  in  its  export 
trade,  because  of  the  small  population  and  the  extensive  facilities  in 
good  grazing  land.  In  the  early  years,  when  there  was  no  method  of 
shipping  meat  over  lonff  distances,  the  chief  animal  products  figuring 
in  foreign  trade  were  live  animals,  hides,  wool,  tallow,  and  bone, 
meat  often  being  destroyed  because  of  the  impossibility  of  placing  it 
in  foreign  markets.  Extract  of  beef  became  an  important  item,  to- 
gether with  jerked  and  salted  beef,  which  could  be  shipped  to  Europe 
without  being  destroyed  by  the  long  journey.  With  tne  introduction 
of  refrigerating  methods  and  faster  ocean  transportation,  meats, 
principally  frozen  beef,  became  the  leading  animal  export.  Graphs 
Nos.  6  and  7  show  the  development  of  the  meat  exports  and  their 
relation  to  these  other  products. 


38 


ECONOMIC   POSITION   OF   ARGENTINA  DURING   THE  WAR. 


Go«.o   PESosr* 


E)cpoRT5  OF  Principal  Amimal  Products 

Fffon   ArgenTIWA        l2^2-)'6'^6 


S  YeAtt     r 

AVERAGES 


\d'\7'  18*1 


IW7-|*?0I 


l<10J-l<106 


ISOT-HIl 


-^ 


T 


■^ 


-^ 


isa. 


'^Nominal  V<  tyC5. 


Millions  of 
Goto   Prsos 


Exports  of  Animal  Products.  nii-i9i8 


lOo 


2oo 


•^oo 


■^"n- 


^oo 


o*inY  PRrovcTS 


^ 


Live    ANIMALS 

y       OTM£J»   ANIMAL   PffOOl/trS 


VOTHx     The  bar  representing  exports  In 
tha  first  nine  EOnths  of  1918  la  three- 
fourths  the  width  of  tare   representing^ 
iThole  years.     The  lengih  is  extended  by 
ono-thlrd  so  that   the  total  area  repre- 
sents the   true  exports  during  the  nine 
months,  while  the  length  gires  an  easier 
comp^irison  with  former  years,   since  It 
trould  be  eaulvalent  to  exports  for  the 
year  If  exports  during  the  last   three 
months  equaled  one-third  of  the  amount 
exported  In  the  fi  rst  nine  months. 


ECONOMIC   POSITION   OF   ARGENTINA  DUBING  THE  WAR. 


39 


Exports  of  Principal  Animal  Products,  I892-1911J 
[Nominal  values  in  gold  pesos.s) 


Years. 

Hides. 

Meat. 

^Vool. 

Tallow. 

1892 

21,185,694 
14,980,343 
17,985,032 
21,985,759 
17,139,591 

19,486,152 
20,786,767 
25,090,578 
22,613,020 
23,251,315 

26,181,991 
25,597,370 
24,657,176 
30,509.833 
29, 504, 717 

26,312,984 
23, 535, 769 
40,305,069 
41,382,501 
44,359,065 

7,039,712 
6,742,655 
6,832,005 
6,231,532 
5,498,106 

4,927,035 

5,057,684 
5,001,525 
9,366,970 
12,802,815 

16,551,185 
16,666,230 
18,940,141 
26,052,136 
21,985,978 

21,419,793 
25,569,667 
20,358,475 
33,905,058 
42,306,488 

44,326,060 
25,006,348 
28,946,933 
31,029,532 
33,516,049 

37,450,244 
45,584,603 
71, 283, 619 
27,991,561 
44,666,483 

45,810,749 
50,424,168 
48,355,002 
64,312,927 
58,402,771 

59,252,948 
47,246,783 
59,921,951 
58,847,699 
50,494,027 

2, 263, 729 

1893 

2, 549, 763 

1894 ■    

2, 809, 450 

1895  . 

3,807,751 
3, 179, 326 

1896 

1897 

2,656,048 
2,862,512 
2,205,593 
2. 805, 367 

1898 .     . 

1899. 

1900 

1901... 

2,902,715 

6,209,038 
4,735,579 
4,012,083 
5,323,005 

1902. 

1903 

1904 .       .                      

1905 

1906 

3,487,459 

4,813,778 
6,033,774 
7,573  230 

1907 

1908. 

1909 

1910... 

9,536,974 
11,768,900 

1911 

FI\'E-YEAR  AVERAGES. 


1892-189'? 
1897-1901 
1902-1906 
1907-1911 


18,655,284 
22, 2i5, 566 
27, 290. 217 
35,179,077 


6, 508, 802 

7,431,206 

20,  a39, 135 

30,511,896 


32.564,984 
45,395,302 
53,461,123 
55,152,681 


2,922,004 
2,686,447 
4,953,433 
7,945,331 


1  Source:  Anuario  de  Estadlslioa,  1911;  preface,  p.  XVf. 

«  N  orainal  values  are  u^od  liere  because  real  values  have  not  been  calculated  for  years  prior  to  1910. 
and  nominal  values  differ  only  slightly  before  1911. 


Real 


Value  of  Argentina's  Exports  of  Animals  and  Anxmal  Products.^ 
[Real  values  in  gold  pesos.) 


Products. 


1911 


1912 


1913 


1914 


Meats 

Dairy  products 

Wool. 

Hides 

J  Ave  animals 

Other  animal  products 

Total 


60,931,362 
1,390,605 

50,494,027 

44, 443, 881 
9,  639,  891 

19, 270, 432 


65,000,465 
3, 157, 489 
58, 148, 664 
62,664,418 
11,479,996 
19,012,860 


76,373,504 
3,051,492 

45, 270, 016 

46, 671, 508 
9,787,370 

19, 724, 245 


186, 170, 198 


209, 463,  892 


200, 878, 135 


91,009,752 
2,860,177 

46,967,658 

38,416,821 
7,168,585 

12,271,750 

198,694,743 


Products. 


1915 


1916 


1917 


1918, 
9  months. 


Meats 

Dairy  products 

Wool 

Hides 

Live  animals 

Other  animal  products 

Total 


97,623,?75 
3,621,603 
55,579,000 
53,787,445 
10,384,812 
13.851,549 


129,277,603 

5,194,021 

66,229,428 

67,309,112 

6,944,766 

20,623,400 


137,085,392 
11,626,270 

118,382,532 

70,280,627 

4,902,288 

33, 758, 158 


175, 738. 506 
12,952,820 

102, 873, 164 

40,317,056 

7,729,114 

30,108,026 


234,847,68-1 


295,578,300 


376,035,267 


369,718,686 


1  Source:  El  Comercio  Exterior  Argentino,  Boletin  176;  Anuario  de  Estadlsiica  1911,  1912, 1913, 
and  1915. 


1914, 


40  ECONOMIC  POSITION    OF  ARGENTINA  DURING  THE  WAR. 

LIVE    ANIMALS. 

The  live  animals  exported  are  cattle,  asses,  mules,  horses,  sheep, 
and  a  few  llamas  and  hogs.  By  far  the  largest  item  in  the  exportation 
of  live  animals  is  cattle,  amounting  to  6,136,299  pesos  gold  out  of  the 
7,729,114  pesos  gold  of  exports  of  all  live  animals  during  the  first  nine 
months  of  1918.  Almost  all  of  these  were  destined  to  South  American 
countries,  especially  Uruguay,  to  which  were  sent  74, 101  head  of  cattle 
during  the  first  nine  months  of  1918  and  45,019  during  the  year  1917. 

Dairy  products  have  be^un  to  figure  in  export  trade  recently. 
Hides  nave  always  been  an  important  factor,  while  Argentina's  wool 
exports  have  more  than  doubled  in  value  since  1911  and  increased  in 
quantity  from  120,000  tons  in  1913  to  127,000  tons  in  1917. 

MEAT  PRODUCTION  AND  TRADE. 

In  the  early  days,  when  exports  were  few,  cattle  were  shipped  to 
Europe  on  the  hoof.  In  other  cases  the  saladeros  shipped  their  salted 
and  dried  beef  to  other  tropical  countries.  With  the  introduction  of 
refrigerating  processes  came  great  possibilities  in  the  development  of 
the  frigorificos  or  refrigerating  plants.  At  first  frozen  meats  were 
shipped,  later  came  the  chilled  meats,  when  refrigerating  vessels  were 
placed  in  the  service.  The  chilled  meat  commands  a  higher  price, 
due  to  a  better  flavor.  The  business  of  slaughtering  the  live  stock  and 
preparing  them  for  shipment  has  developed  into  the  leading  industry 
of  the  country.  This  development  is  due  in  part  to  the  erection  of 
facilities  for  slaughtering  and  refrigerating  by  American  packers,  who 
were  suffering  from  the  decreasing  supply  of  cattle  in  the  United  States. 
In  1901,  when  the  exports  from  the  United  States  began  to  decline 
materially,  the  exports  of  Argentine  beef  began  to  assume  importance ; 
since  that  date  the  increase  nas  been  steaoy  and  rapid,  559,216  tons 
being  exported  in  1917. 

England  has  been  the  principal  market  for  Argentine  beef, 
although  the  war  demands  have  changed  conditions  somewhat. 
Italy  and  France  have  imported  large  quantities  of  frozen  beef  for 
their  armies,  and  the  United  States  has  recently  become  a  meat 
importer.^ 

One  of  the  causes  of  the  development  of  the  refrigerating  industry 
is  the  closing  of  English  ports  against  cargoes  of  live  cattle,  for  fear 
of  anthrax.  The  refrigerating  companies  conquered  the  English 
market,  which  purchases  the  greater  part  of  the  Argentine  frozen  meat. 
Steps  have  been  taken  with  a  view  to  reopening  the  ports  imder  a 
pledge  of  sanitary  measures;  but  nothing  decisive  has  been  done  on 
account  of  the  protests  of  English  cattle  breeders,  and  also  of  some 
Argentine  refrigerating  companies  which  have  been  created  by 
Ei^lish  capital. 

Of  the  11  large  frigorificos  doing  business  in  the  Republic,  only  2 
are  controlled  by  Argentine  capital.  The  English  early  sought  this 
lucrative  trade,  but  the  big  American  packers  established  frigorificos 
of  such  strength  that  the  British  concerns  sent  a  joint  appeal  to  the 
Argentine  Government  in  1913  to  prevent  the  excessive  exportation 
by  the  American  concerns.    The  Government,  however,  found  no 

1  By  no  means  a  "net  importer."    Beef  is  the  principal  meat  imported;  it  Is  also  exported  in  much 
larger  quantities. 


r 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE  WAR. 


41 


abuses  in  the  American  methods.  With  the  first  shock  of  the  war 
many  of  the  refrigerating  plants  were  forced  to  close,  but  in  the 
autumn  of  1914  the  British  Government  contracted  for  15,000  tons 
of  frozen  and  chilled  meat  per  month  for  12  months.  An  agreement, 
similar  to  the  wheat  convention,  seems  not  to  have  been  necessary, 
because  the  British  Government  contracted  for  80  per  cent  of  the 
output  of  the  British  frigorificos. 

Swift  &  Co.  were  the  fu-st  United  States  packers  to  enter  Argentina, 
and  they  control  the  Compania  Swift  de  la  Plata.  This  company 
reported  paid-up  capital  of  $7,237,500  in  1915.  Armour  &  Co. 
opened  a  new  frigorifico  in  1915  at  La  Plata,  which  is  said  to  be  the 
largest  in  South  America;  its  capital  is  $9,650,000.  The  company 
is,  technically,  an  Argentine  concern  and  is  known  as  the  Sociedad 
Anonima  Frigorifico  Armour  de  la  Plata.  The  Sociedad  de  La 
Blanca,  with  a  capital  of  $4,342,500,  is  also  an  Argentine  company, 
controlled  by  Morris  and  Armour.  The  Frigorifico  Wilson  de  la 
Argentina,  at  Valentin  Alsina,  Prqvince  of  Buenos  Aires,  is  also 
controlled  by  United  States  capital. 

The  following  table,  listing  the  1 1  f rigorificos  in  Argentina  and  giv- 
mg  their  exports  of  frozen  and  chilled  beef  during  the  first  half  of  the 
two  years  1917  and  1918,  shows  the  great  increase  in  the  exports  of 
frozen  beef  by  Swift  &  Co.,  and  by  other  United  States  companies, 
a  similar  increase  for  British  companies,  and  the  relation  between  the 
products  of  companies  controlled  by  British,  American,  and  Argen- 
tine capital. 

Meat-Packing  Companies  (Frigorificos)  and  Their  Exports,  January-July, 
1917,  AND  January- July,  1918.* 


January-July, 

1917. 

January-July, 

1918. 

Frigorfficos. 

Frozen 

sheep 

and 

lambs. 

Frozen 
beef. 

Chilled 
beef. 

Frozen 

sheep 

and 

lambs. 

Frozen 
beef. 

Chilled 
beef. 

Argentine: 

Cia.  Sansinens 

Carcasses. 
142,529 
25,785 

Quarters. 
130,095 
127,367 

Quarters. 
26,044 
11,441 

Carcasses. 
103, 755 
25,582 

Quarters. 
155,112 
130,970 

Quarters. 

254 

Total  Argentine 

168,314 

257,462 

37,485 

129,337 

286,082 

254 

British: 

Las  Palmas        . .                  

224, 139 

47,690 
65,073 

835,386 
146, 795 
108,  808 

66,409 
24,732 

103,111 
35,235 
42,496 

779,716 
173,395 
252,600 

3,083 

Smithfleld  &  Argentina  Meat  Co 

1,409 

Total  British 

336,902 

1,090,254 

91,141 

180, 842 

1,205,711 

4,492 

American: 

La  Blanca 

123,037 
124,616 
133, 774 
188, 120 
41,284 

385,758 
473, 732 
160, 195 
<113,  255 
441, 402 

25,952 
126,971 
24,782 
60,900 
15,047 

41,431 

146,327 

60,562 

141,463 

7,258 

441,494 
743,590 
199,043 
477,394 
27,111 

Swift  de  la  Plata 

5,055 
4,300 
7,155 

Fr.  Wilson  de  la  Argentina,  S.  A 

Fr.  Armour  de  la  Plata,  S.  A.. 

Swift  de  Montevideo,  S .  A 

Total  American 

610, 831 

1,874,342 

243,652 

397,068 

1,888,632 

16,510 

1  Source:  Commerce  Reports,  Nov.  14, 1918. 

As  clearly  shown  in  graphs  Nos.  8  and  9  and  by  the  following 
tables,  frozen  and  chilled  meats,  especially  frozen  beef,  have  become 
by  far  the  most  important  meats  exported,  while  salted  and  jerked 
beef  exports  have  slowly  diminished  in  importance.  The  salt- 
meat  or  ^^saladeros"  industry  is  carried  on  principally  in  Buenos 
Aires,  Santa  Fe,  Entre  Rios,  and  Corrientes,  and  exports  of  this  kind 
of  meat  are  chiefly  to  Latin  America.     During  the  war  the  demand 


42 


ECONOMIC  POSITION   OF  ARGENTINA  DURING   THE   WAR. 


for  beef — especially  frozen  and  canned  beef — in  Europe  caused  Aigen- 
tina's  exports  of  meats  to  increase.  Graph  9  shows  that  the  increase 
consisted  of  frozen  beef  and  canned  meats.  The  particular  advan- 
tages of  canned  meat  for  armies  in  the  field  is  responsible  for  this  fact. 


JbJS. 


/VEf?AGLeS  T 


Argentina'^    Exports  of 
Principal    Meats    )S^8-ni7_7bNS. 


l908-l«ligL|l,'|i,i,l|l,',l,l,l,l| 

'''''■'■'■'■'''■'''■'■' 


n\Z-\<MT  l/Vl'l'l'l'i'l'i'i'lVl'l'l'i'l'i'l 


Thaujanos 


Exports  op  Meats,  1898-1917.* 


Years. 

Frozen 
beef. 

Chilled 
beef. 

Frozen 
mutton. 

Pre- 
served 
meat. 

Salted 

and 

jerked 

meat. 

1898.. 

Metric 
tons. 
6,8G7 
9,079 
24,590 
44,904 
70,018 

81,520 
97,744 
152,857 
153,809 
138,222 

174,563 
209,435 
245,267 

297, 738 
317,620 

332,054 
328,  278 
351,036 
411,547 
355,842 

231,432 

Metric 
tons. 

Metric 
tons. 
59,833 
66,627 
56,412 
63,013 
80,073 
78,149 
88,616 
78,351 
67,3S8 
69,785 

78,846 
66,495 
75, 102 
85,916 
70,175 

45,928 
68, 088 
35,035 
61,318 
39,820 

18,054 

Metric 
tons. 
1,623 
1,816 
1,405 
946 
1,644 

3,742 

2,429 
2,488 
1,259 
1,595 

1,727 
6,390 
12,082 
15,413 
17,699 

12,574 

13,087 
31,944 
44,  569 
100,784 

85,806 

Metric 
tons. 
22,242 

1899 

19,164 

1900 

16, 449 

1901 

24, 296 

1902 

22,304 
12, 991 

1903 

1904 

11, 726 

1905..   . 

25,2S8 

1906 

4,C50 

1907 

10,649 
6,666 

1908 

6,252 
1,222 
8,441 
15,096 
25,231 

34,175 
40,  690 
11, 703 
16,153 
38,995 

1,545 

1909 ...  ... 

11, 622 

1910 

9,442 

1911. 

12, 120 

8,824 

1912 

1913. 

3,910 

1914 

2,383 
213 

1915 

1916 

1,121 

1917 .  . 

7.613 

1918  (6  months.) 

1,477 

FFVE-YEAR  AVERAGES. 


1898-1902 

30,819 
124,830 
248, 924 
355, 751 

63,191 

76, 457 
73,307 
46, 158 

1,486 

2,302 

10,662 

40,591 

20,891 
13, 001 

1903-1907 

1908-1912 

11,  248 
28,343 

9,735 
3,051 

1913-1917 

^  Source:    £1  Comerdo  Exterior  Argentine,  Boletin  No.  176^  p.  423. 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE  WAR.  43 


o 


I- 

8- 


s- 

8— 


z  zO' 


2f- 


44  ECONOMIC  POSITION   OF  ARGENTINA  DURING   THE   WAR. 

Exports  of  Meats  from  Argentina,  1911-1918.^ 


Product.''. 

1911 

1912 

1913 

1914 

1915 

1916 

1917 

1918  (9 
months). 

Frozen  beef 

Metric 
tons. 
297,738 
15,096 
85,916 

Metric 
tons. 
317,620 
25,231 
70,175 

Metric 
tons. 
332,054 
34, 175 
45,928 

Metric 

tons. 

328, 278 

40,690 

56,688 

334 

2,383 

13,590 

15,890 

Metric 

tons. 

351,036 

11,703 

35,035 

887 

213 

32,514 

11,158 

Metric 

tons. 

411, 547 

16, 153 

51,317 

1,345 

1,120 

45, 197 

18,069 

Metric 

tons. 

355,842 

38,995 

39,820 

764 

7,613 

102, 153 

14,029 

Metric 

tons. 

364,963 

1,545 

32,642 

548 

Chilled  beef 

Frozen  meats  (mutton,  etc.) . 
Frozen  pork 

Salted  and  jerked  meat 

Canned  meat 

12, 120 
16,127 
14,567 

8,824 
18,331 
15,661 

3,910 
13,014 
14,005 

2,423 
149  656 

Miscellaneous  frozen  meat 

13,786 

Total 

441,564 

455,842 

443,086 

459,853 

442,546 

544,748 

559,216 

565,563 

I  El  Comercio  Exterior  Argentino  en  1916  y  1917,  Boletin  No.  176,  p.  130. 

Frozen  beef  will  continue  to  be  the  chief  meat  exported,  and  it 
is  probable  that  canned-meat  exports  will  not  continue  to  increase. 
Chilled  beef,  on  the  other  hand,  has  not  been  in  much  demand  during 
the  war,  but  will  probably  become  more  popular  and  increase  in 
importance 

The  great  increase  in  the  demand  for  canned  meats  has  been  one 
of  the  interesting  results  of  the  war.  During  the  war  many  com- 
plaints were  registered  with  the  Argentine  Government  against 
the  foreign  frigorificos.  The  stock-farm  people  made  the  peculiar 
objection  that  the  slaughterhouses  were  paying  better  prices  for  the 
lean  cattle  of  the  grazing  lands  than  for  their  own  fat  live  stock. 
The  public  complained  because  it  was  paying  too  much  for  meat. 
The  defense  put  forth  by  the  meat  packers  is  important.  They 
said  that  limited  cargo  space  and  the  need  for  a  convenient  food  for 
military  purposes  had  increased  enormously  the  exportation  of 
tinned  meats.     The  statistics  bear  out  this  contention. 

Exports  of  Cannep  Meats  (Preserved  Meats  and  Preserved  Tongues).^ 


Years. 

Tons. 

Value 

(gold 

pesos). 

Years. 

Tons. 

Value 
(gold 
pesos). 

1910 

1-3,030 
16, 127 
18,331 
13,014 
13,590 

2,260,078 
3,834,879 
3,604,218 
2,285,158 
3,830,956 

1915  ... 

32,514 
45, 197 
102, 153 
(^) 

11,373,638 
18,748,916 
37,637,011 

1911 

1916 

1912 

1917 

1913 

1918 

1914 

1  Source:    El  Comercio  Exterior  Argentine,  Boletin  176,  p.  130. 
*  Estimated  50  per  cent  increase  over  1917. 

The  results  of  this  new  industry  were  twofold:  (1)  It  created  a 
demand  for  the  lean  cattle  and  sent  the  price  up,  while  the  demand 
for  the  farm-fed  animal  remained  nearer  normal;  (2)  a  great  demand 
was  created  for  tin  plate.  The  imports  of  the  latter  increased  as 
shown  in  the  following  table: 

Imports  of  Tin  Plate.* 


Years. 

Kilos. 

Pounds. 

1914 

10,556,186 
24,640,817 
28,180,021 
31,570,268 
37,361,551 

23,272,168 
54,323,145 
62,125,674 
69,599,813 
82,367,275 

1915 

1916 

1917 

1918  (9  months) 

»  Source:  El  Comercio  Exterior  Argentino. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 


45 


Early  in  the  war  Great  Britain  furnished  about  75  per  cent  of  the 
tin  plate.  The  exports  from  the  United  States  increased  so  rapidly 
in  1918  that  a  rigid  watch  was  kept  on  its  final  destination,  because  of 
the  necessity  of  conserving  this  commodity. 

DAIRY   INDUSTRY. 

Dairying  and  cheese  making  represent  one  of  the  largest  industries 
in  Argentina,  employing  probably  about  30,000  people.  The  latest 
available  official  figures  snow  some  8,160  establishments  in  this  line 
in  the  whole  Republic,  with  an  output  of  about  22,359,580  pounds  of 
butter,  14,940,916  pounds  of  cheese,  and  10,189,092  pounds  of  casein. 
Production  has  increased  since  these  figures  were  compiled,  as  the 
home  consumption  of  butter  is  established  at  15,428,000  pounds, 
which  would  make  the  total  production  about  41,876,000  pounds  in 
1918,  while  the  exports  of  casein  in  1917  reached  10,704,000  pounds. 

Since  1911  the  imports  of  cheese  declined  from  10,841,476  pounds 
to  almost  nothing,  while  the  exports  of  Argentine  cheese  increased 
from  almost  nothing  in  1911  to  6,012,512  pounds  in  1917,  and  for  the 
first  half  of  1918  the  exports  of  cheese  reached  a  total  of  8,641,884 
pounds.  This  amount  would  have  been  greater  except  for  the  pro- 
nibitive  measures  of  the  United  States.  It  is  imderstood  that  British 
investors  are  undertaking  to  buy  all  the  butter  in  Argentina  available 
for  export.  There  is  still  much  room  for  the  expansion  of  the  butter 
and  cheese  industry. 

Argentine  imports  and  exports  of  cheese  from  1912  to  1917  are 
shown  in  the  following  table,  which  gives  quantities  in  pounds: 


Years. 

Imports. 

Exports. 

Years. 

Imports. 

Exports. 

1912 

11,846,500 
11,119,180 
8,450,136 

4,408 
15,  428 
8,816 

1915.. 
1916.. 
1917 

7,304,056 

3,131,884 

689,852 

13,224 
502, 512 

1913 

1914              .     . 

6,012,512 

Source:  El  Comercio  Exterior  Argentino,  Boletin  176,  p.  109. 

The  exports  of  butter  have  recently  undergone  remarkable  expan- 
sion. Most  of  these  go  to  England,  which  contracted  to  buy  all  the 
butter  produced  in  Argentina  until  April,  1919,  and  it  was  expected 
the  agreement  would  be  renewed.  Over  30,000  pounds  were  shipped 
in  1918,  an  increase  of  283  per  cent  since  1914.  Large  exports  of 
butter  go  also  to  other  Latin  American  countries.  The  following 
table  shows  the  value  of  Argentina's  exports  of  dairy  products: 

Value  of  Exports  of  Dairy  Products  from  Argentina,  1914-1918. 

[In  gold  pesos.] 


Products. 

1914 

1915 

1916 

1917 

1918(9 
months). 

Butter 

2,256,114 

745 

5a'5,067 

3,087,948 

1,211 

521,514 

4,326,933 
125,241 
590,296 

7.799,390 
2,213.877 
1,38,5,718 

10,443,861 
2,031,633 

468,479 

Cheese 

Cream 

Total 

2,860,177 

3,621,603 

5,194,021 

11,626,270 

12,952,820 

46 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 


WOOL. 

In  1910  Argentina  was  second  only  to  Australia  as  a  wool  producer, 
when  its  clip  was  18  per  cent  of  the  world's  annual  production. 
By  1916  it  produced  only  13  per  cent,  and  since  that  date  it  has 
steadily  declined  as  a  producer  of  wool,  its  percentage  of  world  pro- 
duction being  now  about  6  per  cent.  This  is  due  to  the  fact  that 
specializa;tion  in  sheep  raising  for  meat  has  proved  more  and  more  to 
be  one  of  the  industries  especially  suited  to  Argentina's  economic 
situation  and  foreign  trade. 

Though  Argentina  has  been  surpassed  by  the  United  States  in  recent 
years  as  a  producer  of  wool,  its  exports  have  constantly  been  a  large 
factor  in  foreign  trade,  being  second  only  to  wool  exports  from 
Australia,  while  the  United  States  has  imported  increasing  amounts. 

Most  of  the  exports  from  Argentina  are  in  the  form  of  unwashed 
wool.  The  amount  shows  little  variation  during  the  war,  but  the 
destination  has  changed  considerably.  In  1913  France  and  Germany 
each  received  about  33  per  cent  and  the  United  States  6  per  cent. 
Of  the  254,866,000  pounds  exported  in  1917  the  United  States  received 
177,820,000  pounds,  or  60  per  cent.  In  the  first  10  months  of  1918 
the  United  States  took  133,900,000  pounds,  or  73  per  cent,  showing  the 
importance  of  Argentina  as  a  source  of  wool  supply  for  the  United 
States  during  the  war. 

The  following  table  shows  the  exports  of  unwashed  wool  from 
Argentina,  1913  to  1917: 

Exports  of  Wool  (Unwashed).* 


Countries  of  destination. 

1913 

1914 

1915 

1916 

1917 

United  States  

Met.  tons. 

8,854 
36, 864 
18,428 

2,942 

Met.  tons. 
17,100 
23,794 
26,894 
6,835 

Met.  torn. 
51, 6n 
17,964 
16,400 
19,734 

Met.  tons. 
71,803 
11,263 
12,896 
10,653 

Met.  tons. 
88,910 
12,762 
9,077 
8,775 
2,385 
1,239 
1,315 
1  585 

United  Kingdom 

Italy 

Netherlands 

Switzerland             

1,002 

1,447 

4,552 

2,441 

225 

2,169 

4,816 

511 

438 

Spain 

62 

2 
239 
393 

68 

30,386 

1,254 

8,788 

3,054 

2,041 

1,268 

127 

Sweden       

218 

10 

Denmark 

79 

Germany        

39,713 

1,825 
10,092 

Belgium 

3 
270 

18 
44 
11 

Brazil  



Canada 

1 

Chile            

i 

296 

To  "order" 

69 

646 

369 

1,078 

Total 

120,079 

117,270 

117,670 

117,657 

127, 433 

»  Source:  El  Comercio  Exterior  Argentino. 
HIDES   AND   TANNING. 

The  salted  and  dry  skins  and  hides  of  the  ox,  cow,  sheep,  and  horse 
are  sold  abroad.  The  exports  vary  from  year  to  year,  according  to 
the  number  of  animals  slaughtered,  cargo  space,  etc.  No  marked 
tendency  is  revealed  during  the  last  four  years.  During  the  year 
1918  Argentina's  best  customers  for  these  products  were  Great  Brit- 
ain, the  United  States,  and  Italy. 


ECONOMIC  POSITION"   OF  ARGENTINA  DURING  THE  WAR.  47 

The  raw  materials — hides  and  quebracho — being  native  products  of 
Argentina,  should  cause  the  tanning  industry  to  occupy  a  place  of 
far  greater  importance  than  it  does.  The  tanning  extract,  known  un- 
der the  name  of  quebracho  extract,  is  prepared  chiefly  from  the  logs 
of  the  red  qnebTSicho  tree  (Quebracho  Colorado)  and,  to  a  smaller  ex- 
tent, from  the  so-called  iron  tree  (urunday) ,  whose  bark  is  said  to  be 
particularly  rich  in  tannin.  The  quebracho  wood  yields  23  to  24  per 
cent,  by  weight,  of  extract.  The  capital  invested  in  the  quebracho- 
extract  industry  is  estimated  at  $40,000,000  or  more.  The  average 
exports  per  year  of  this  tanning  material  is  71,282  tons;  the  local 
tanneries  consume  a  small  part  of  the  production.  The  fact  that 
quebracho  is  probably  the  richest  of  all  woods  in  tannin  accounts 
for  the  development  in  northern  Argentina  of  a  dozen  or  more  ex- 
tract factories  and  for  the  attention  paid  to  the  forests  of  Argentina 
and  Paraguay  by  similar  foreign  industries. 

This  subject  is  emphasized  in  the  following  chapter,  which  deals 
with  forest  products. 
124236°— 20 4 


IV.  FOREST  PRODUCTS. 
ARGENTINA  AN  IMPORTER  OF  LUMBER. 

Argentina  is  the  heaviest  lumber  importer  and  the  largest  con- 
sumer in  the  southern  continent,  handling  three  times  the  quantity 
imported  by  Brazil  and  over  eight  times  that  imported  by  Uruguay. 
During  the  last  10  years  86  per  cent  of  all  the  lumber  imported  into 
Argentina  and  Uruguay  has  been  the  production  of  the  forests  of 
North  America,  and  nearly  96  per  cent  of  these  imports  is  credited  to 
the  United  States  and  Canada.  Notwithstanding  the  importation  is 
ten  times  the  quantity  of  lumber  produced,  the  forests,  next  to  the 
agricultural  products,  constitute  the  country's  most  valuable  natural 
resource.  The  forest  products  of  Argentma,  however,  meet  only 
about  11  per  cent  of  the  demand  at  home  and  are  included  among 
Argentina's  staple  articles  of  commerce.  In  1914  the  value  of  the 
exports  amounted  to  $9,000,000;  in  1917  to  $17,124,147;  and  during 
the  first  six  months  of  1918  to  $5,141,765.  They  were  sent  to  Europe, 
North  America,  Africa,  and  Japan. 

The  shortage  caused  by  the  destruction  of  timber  lands  in  Europe 

^'     during  the  war,  and  in  America  by  commerce,  caused  unusual  atten- 

y      tion  to  be  given  to  the  great  timber-producing  area  of  Argentina, 

which  forms  20  per  cent  of  the  whole  area.     Remote  from  the  great 

trunk    lines    there    are    about    150,000    square    miles    of    wooded 

wilderness. 

LOCATION  OF  TIMBER. 

Argentina's  forests  are  exploited  mainly  in  the  northern  States, 
near  the  Bolivian,  Paraguayan,  and  Brazilian  boundaries.  The  larg- 
est forest  region  is  spoken*  of  as  the  Gran  Chaco,  which  covers  the 
national  Territories  of  the  Chaco  and  Formosa  and  large  portions  of 
the  Provinces  of  Santiago  del  Ester o,  Santa  Fe,  Tucuman,  and  Cor-  / 
doba,  an  area  of  250,000  square  miles.  It  contains  numerous  varie- 
ties of  hard  woods,  only  a  few  of  which  have  so  far  proved  merchant- 
able. To  remove  the  desirable  kinds  involves  difficult  and  costly 
logging  problems,  which,  together  with  the  high  transportation  rates, 
are  the  principal  factors  contributing  to  the  high  selling  price  of 
domestic  woods.  This  region  produces  the  quebracho,  valuable  for 
its  tanning  extract,  its  medicinal  bark,  and  its  indestructible  wood; 
the  algarrobo,  which  can  be  used,  untreated,  to  pave  streets;  the 
fiandubay ,  which  makes  the  durable  fence  posts  required  for  ranches ; 
the  lapacho,  used  for  indestructible  railroad  ties  and  dock  timber; 
the  petereby,  which  furnishes  excellent  masts;  the  laurel  bianco,  a 
cabinet  wood;  and  the  Spanish  cedar,  a  soft  wood  with  many  uses. 

Besides  the  Chaco,  Argentina  has  a  considerable  forested  area  in 
western  Patagonia  along  the  Chilean  frontier.  These  Cordilleran 
forests  of  soft  woods  and  Temperate  Zone  hard  woods  form  a  strip 
varying  from  5  to  10  miles  in  width  and  extending  nearly  1,300  miles. 
Beech  {Fagus)  in  several  varieties  predominates  and  is  locally  known 
as  roble  (oak).  Cedar  and  larch  occur  in  patches,  the  latter 
resembling  the  California  redwood  in  appearance  and  texture.     A  few 

48 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 


49 


small  sawmills,  which  satisfy  the  local  demand  of  sparsely  settled 
rural  communities,  are  the  only  evidences  of  exploitation  in  these 
forests,  although  they  offer  birch,  cedar,  larch,  Chilean  pine,  oak, 
beech,  Winter's  bark,  laurel,  and  calden.  The  pine  yields  paper 
stock  equal  to  any  imported.  The  lack  of  transportation  facilities 
has  checked  the  development  of  the  hardwoods  and  softwoods  of  the 
Tropical  and  Temperate  Zones. 


Map  3.— Forest  areas. 


50 


ECONOMIC   POSITION   OF   ARGENTINA  DURING  THE  WAR. 


Ill  the  Mesopotamia  region,  which  lies  between  the  rivers  Parana 
and  Uruguay  and  includes  the  Provinces  of  Entre  Rios  and  Cor- 
rientes  and  the  Territory  of  Misiones,  the  growth  is  similar  to  that 
of  the  Chaco.  In  this  region  useful  trees  and  plants  from  every 
part  of  the  world  have  been  introduced,  some  of  which  are  the  apple, 
peach,  apricot,  pear,  fig,  orange,  lemon,  eucalyptus,  and  paradise  trees. 

The  pampas,  which  cover  an  area  of  300,000  square  miles,  and 
include  the  territory  which  lies  between  the  Parana  River  and  the 
Atlantic  on  the  east,  the  mountainous  regions  on  the  west,  the  River 
Salado  on  the  north,  and  the  Colorado  on  the  south,  are  only  par- 
tially wooded;  large  areas  of  plains  are  intermingled  with  scrubby 
forests  of  algarroba,  quebracho  bianco,  tala,  and  acacia.  However, 
the  forests  of  Tucuman  have  a  dense  growth  and  contain  walnut, 
cedar,  laurel,  tipa,  and  Quebracho  Colorado  trees. 

IMPORTS   OF  LUMBER. 

Argentina  has  depended  in  the  past  upon  imported  lumber,  and 
importation  has  been  the  foremost  branch  of  lumbering  in  the  Plate. 
In  1917  it  imported  37,391,000  board  feet  of  southern  yellow  pine, 
2,024,000boardf  eet  of  northern  white  pine,  202,000boardfeet  of  spruce, 
and  4,535,000  board  feet  of  oak  from  the  United  States,  and  11,089,- 
937  board  feet  of  hard  woods  from  other  South  American  countries. 
Normally  about  89  per  cent  of  Argentina's  lumber  has  been  import- 
ed, about  500  ships  being  required  annually  tq  carry  the  imports. 

The  following  table  shows  Argentina's  imports  of  all  woods  and 
woody  substances,  1913-1918.  The  second  table  indicates  the 
imports  of  wood  pulp  for  news-print  paper. 

Total  Imports  of  Wood,  Woody  Substances,  and  Wood  Manufactures,  1913 
TO  June,  1918,  by  Countries  of  Origin. ^ 

[Values  in  United  States  currency.] 


Countries  of  origin. 

1913 

1914 

1915 

1916 

1917 

1918, 
Jan.-June. 

Africa.                   

$1,382 
268,014 

$477 
263,825 
6,527 
54, 456 
25,850 
45,910 
5,138 

1 

Germany'. 

$50,945 

48 

1,726 

1,330 

64,406 

j 

Australia 

A  ustria-Hungary ... 

79,916 
27,556 
57,588 

i 

Belgium 

1 

Brazil                              .  .  . 

1 

Canada 

Cuba  -               

1,478 

53 

233 

12,019 

311,935 

778 
165 
136 

1   ■ 

Chile 

1,268 
1,770 

i 

China  

1 

DpTiTnarlr                               

! 

Spain 

72, 147 

1,783 

875,949 

74,751 

45,926 

2,054 

5,898 

96,288 

6,829 

453,574 

75,531 

1,546 

784 

54,816 

16,418 

315,061 

5,525 

1,625 

1,798 

90,121 

! 

Egypt                 

United  States 

i,  253, 450 

190,077 

81,091 

21,355 

5,664 

253,394 

39,589 

815,898 

113,243 

111 

927 

52,961 

1,771 

512,267 

1,169 

1 

618 

848,425 
32,190 
42, 169 
6,294 
3,477 
58,983 
17,527 
451,455 
21,541 

Italy                        .      .      .  . 

Japan 

Mexico 

Norway                              .  . 

Portugal 

544 
59,271 

United  Kinedom 

Sweden 

286,543 
3,649 

Switzerland 

Uruguay 

9,068 

Total 

4,103,760 

2,513,524 

2,050,791 

$6,  728, 712 

$4,368,030 

$3,222,203 

1  Source:  EI  Comercio  Exterior  Argentino. 
Note.— Imports  are  not  listed  by  countries  after  1915, 


ECONOMIC   POSITION   OF   ARGENTINA   DURING  THE   WAR. 


51 


Imports  of  Wood  Pulp  for  News-Print  Paper,  1913  to  June,  1918.^ 
[Quantities in  tons;  values  in  United  States  currency.] 


Countries  of  origin. 

1913 

1914 

1915 

Quantity. 

Value. 

Quantity. 

Value. 

Quantity. 

Value. 

Germany 

A  iistriji-TTnTiparv 

3,760 

120 

51 

413 

891 

$108,838 

3,474 

1,471 

11,961 

25,806 

6,337 
541 

$183,451 
15,664 

1,129 

$32,676 

Denmark                        .      .  .  .......  .  . 

United  States 

1,195 
305 

34,602 
8,815 

1,514 

43,823 

France                         

Italy 

Norway              

8,753 
384 

253,394 
•  11,117 

3,326 
180 

96,288 
5,211 

2,037 
279 

58,983 

Netherlands               .  .  .  .  .  .  ......... 

8,091 

United  Kinedom 

Sweden           

17,621 

510,127 

10,883 
567 

315,061 
16,418 

9,878 

285,970 

Russia 

Brazil 

440 

12, 723 

Total     

31,993 

926,188 

23,334 

675,510 

15,277 

442,266 

1  Source:  El  Comericio  Exterior  Argentino. 

Note. — Imports  are  not  listed  by  countries  after  1915.    The  total  quantities  and  values  were:  1916, 
22,285  tons,  valued  at  $645,137;  1917,  13,445  tons,  $389,167;  1918  ( Jan.-June),  5,261  tons,  $152,318. 

Much  interest  has  been  shown  in  recent  years  in  Argentina's  forest 
conservation  and  development.  If  transportation  can  be  provided 
and  the  forests  properly  exploited,  the  large  imports  of  lumber  will 
be  greatly  diminished. 

The  United  States  is  the  chief  purveyor  of  lumber  for  Argentina, 
with  Canada  second.  All  of  the  yellow  pine  and  a  large  portion  of 
the  white  pine,  spruce,  and  oak,  which  form  the  principal  lumber 
imports  into  Argentina,  originate  in  the  United  States.  Much  of  the 
Canadian  lumber  is  shipped  through  Boston,  Portland,  or  other  New 
England  ports.  The  following  tables  show  imports  from  the  United 
States: 


United  States  Exports  of  Wood  to  Argentina,  Fiscal  Years  1913-1918.^ 


Articles. 

1913 

1914 

1915 

Quantity. 

Value. 

Quantity. 

Value. 

Quantity. 

Value. 

Wood: 

Logs  and  round  timber — 

Hardwood Mfeet.. 

670 
1,609 

$18,055 
34,376 

Timber- 
Sawed— 

Pitch  pine  (long-leaf). do 

3,528 
2,048 

8 

3,639 

22 

4,994 

12, 122 

209,409 

27 

2,821 

297 

13,712 

1,312 

$78,895 
1,493 

436 

54,988 

1,198 

302,827 

564, 149 

4,133,397 

1,451 

52,386 

25,571 

458,556 

100,911 
6,812 

38,977 

2,321,689 

3,863 

2,500 

513 

$7,168 

Lumber- 
Boards,  planks,  and  scantlings- 
Cypress M  feet. . 

Fir          .                      do 

9 

6,808 

81,620 

Oak do.... 

Pine- 
White do.... 

Pitch  (long-leaf).. do.... 

Short-leaf do 

All  other                 do 

3,652 

8.416 

172,906 

39 

1,158 

215 

12,224 

1,778 

225,540 

443,659 

3,316,151 

9,695 

22,291 

18,026 

413,339 

97,347 
126,531 

44,575 

974,777 
24,614 
4,875 

1,781 

1,082 

61,800 

4 

100,521 

56,953 

1,037,636 

141 

Poplar do — 

Spruce do — 

All  other   boards,   planks, 
etc- 

Hardwood Mfeet.. 

All  other  lumber 

11 
1,920 

147 

592 
56,820 

10,129 
45,717 

29,620 

Shooks— 
Box 

All  other number. . 

Staves do — 

Heading 

983,439 
64, 180 

434,532 
181,917 

277,591 
856,068 

529,340 
61,174 
3,124 

Total  values 

8,150,099 

5,855,471 

1,939,534 

'  Source:  Records  of  the  Bureau  of  Foreign  and  Domestic 
Commerce. 


Commerce,  United  States  Department  of 


52  ECONOMIC  POSITION   OF   ARGENTINA   DURING  THE  WAR. 

United  States  Exports  of  Wood  to  Argentina,  Fiscal  Year  1913-1918 — Con, 


Articles. 

1916 

1917 

1918 

Quantity.     Value. 

Quantity. 

Value. 

Quantity. 

Value. 

Wood: 

Logs  and  roirnd  timber- 
Hardwood  M  feet. . 

11 

982 
12 

$745 

17,494 
366 

94 
203 

$3,938 
4,762 

Timber- 
Sawed— 

Pitch  pine  (long-leaf)..do 

All  other- 
Hardwood do 

170 

So,  051 

Railroad  ties number. . 

28,803 

17 
3,444 

1,596 
33,317 

19,010 
768 

Lumber- 
Boards,  planks,  and  scantlings- 
Gum M  feet.. 

1 

Oak do.... 

Pine- 
White do.... 

Pitch  (long-leaf).. do.... 
Short-leaf do 

3,547 

3,416 

74,975 

200 

77 

44 

3,868 

j-          768 

217,661 

158,061 

1,198,877 

15,925 

3,988 

2,873 

123,258 

45,929 
356,432 

82,701 

4,535 

2,024 
37,329 

294,338 

92,936 
633,150 

239,097 

44,731 
851,857 

AU  other do.... 

Poplar do — 

Spruce do 

All  other  boards,   planks, 
etc- 

Hardwood do — 

Softwood do 

All  other  lumber 

62 
92 
202 

319 

4,955 
6, 593 
6,405 

22,316 
176,394 

34,230 

1 

2 

192 

/          171 
\           24 

48 

130 

11,119 

16,821 
1,807 
2,314 

55,249 

1,174,652 

270,440 

6,106 

42,  491 

Shocks— 

Box 

Coopefage number. . 

437,861 
204, 438 
27,000 

All  other do 

Staves do — 

Heading 

127, 135 
381,066 

507, 507 
36,788 
1 15, 123 

325,831 
501,656 

650,466 
19,050 
19,292 

Total  values 

2,883,728 

l.%8,825 

2,741,691 

Total  Exports  op  Wood,  Woody  Substances,  and  Wood  Manufactures,  1913 
TO  June,  1918,  by  Countries  of  Destination.^ 

[Real  values  in  United  States  currency.] 


Countries. 

1913 

1914 

1915 

1916 

,,,,          191Man- 

GefTTianv           ..... 

$614,729 

392,882 

406,764 

335 

6,284 

53 

24,044 

1,829,209 

218,744 

532,668 

16,926 

19,020 

85,190 

4,808 

1,500 

213,005 

4,895,565 

299,922 

37,476 

647,321 

$383,461 

219,750 

162,359 

207 

3,481 

2,193 

13,399 

953,013 

81,727 

384,299 

1 

A  ustria-Hungarv 

i 

Belgium. . .."..". 

i     .  .     .  ! 

Bolivia 

$249 

9,611 

45,084 

251,929 

2,606,201 

1,169,099 

1,596,165 

Brazil 

Chile 

Spain    

United  States 

France 

Italy 

Japan 

i6,987 

271,516 
177,063 
106,628 

Netherlands 

3,812 

Portuguese  possessions 

94,180 

6,086,667 

67,132 

133.602 

315,118 

10,728,354 

Russia 

674,464 

572,818 

128,216 

8,902 

T)pTittiftrV 

Total          

10,246,355 

8,915,387 

18,346,299 

$21,666,257 

$17,124,147 

$5,141,765 

1  Source:  El  Comercio  Exterior  Argentine. 
Note.— Exports  not  listed  by  countries  after  1915. 


economic;  position  of  Argentina  during  the  war. 


53 


CONSTRUCTION. 

For  every  use  to  which  an  imported  North  American  or  European 
wood  can  be  put,  a  native  wood,  or  one  easily  imported  from  neighboring 
South  American  countries,  can  be  substituted.  For  general  con- 
struction work  Parana  pine,  floated  down  from  southern  Brazil,  is 
the  equal  of  any  imported  soft  wood;  for  ceiling  and  partition  work 
Spanish  cedar  can  replace  North  American  spruce;  for  flooring  Spanish 
cedar  and  Parana  pme  can  be  substituted  for  southern  yellow  pine. 
Argentine  hard  woods  are  now  being  used  for  molding  and  interior 
trim.  For  indestructible  railroad  ties  quebracho  and  lapacho  have 
no  foreign  competitor,  unless  it  may  be  the  Australian  jarrah.  A 
Federal  statute  now  requires  railroad  ties  to  be  made  of  native  woods. 
Quebracho  is  unexcelled  for  telegraph  poles,  and  lapacho,  curupay, 
and  virapita  for  piling  and  dock  timber.  Gates  and  fencing  are 
being  made  of  quebracl^,  urunday,  curupay,  and  virapita. 

Domestic  timber  is  used  chiefly  for  railroad  ties  and  telegraph 
and  fence  posts,  and  in  the  reconstruction  of  a  stretch  of  dock 
known  as  D3,  which  is  to  cost  $772,000,  the  native  hardwood 
and  pine  will  be  used.  Much  of  the  Argentine  timber  will  be  used 
in  the  proposed  grain  elevators  at  Buenos  Aires,  the  freezing  plants 
of  the  Kosario  district,  the  municipal  slaughterhouse  of  Rosario,  and 
the  bridge  over  the  Parana  River,  between  Ibicuy  and  Baradero,  at 
a  cost  of  $38,632,000. 

QUEBRACHO. 

Formerly  Argentina  was  engaged  only  in  cutting  and  exporting 
quebracho  logs,  but  since  the  establishment  of  several  native  factories 
for  extracting  taimic  acid  the  export  of  the  raw  material  has  decreased, 
while  the  export  of  the  extract  has  increased  proportionately. 
However,  large  quantities  of  logs  are  still  sent  abroad  for  the  extrac- 
tion of  the  tannin.  The  principal  port  of  shipment  is  Santa  Fe.  The 
exports  of  quebracho  logs  from  Argentina  averaged  382,406  tons, 
valued  at  $4,984,053,  during  the  five  years  from  1909  to  1913,  and 
amounted  to  422,360  tons,  valued  at  $4,788,815,  in  1913.  The  fol- 
lowing table  shows  by  countries  and  in  tons  the  exports  of  quebracho 
logs  from  Argentina  for  1916,  1917,  and  six  months  of  1918 : 


Countries  of  destination. 


1918  (6 
months). 


Brazil — 

United  States 

France 

Italy 

Norway 

Paraguay 

United  Kingdom . 

Sweden 

Uruguay 

Subject  to  order.. 


Total. 


Source:  El  Comercio  Exterior  Argentino,  Boletlnos  176  and  178.        jlli  bosifil  .oO  \&wii&Sl 

jime  od:i  81 G I  ai  ^li^Q  ^i^cf 

The  exportation  of  the  logs  in  1917  tDqtb©  Usd<te&'SlMjfeBSDJt<idba 

used  for  the  manufacture  of  extract  wafo85^4?3ttSis,  .wMofo^  6^^i«r^ 

alent  to  25,000  to  30,000  tons  of  extrac.t*oh]^ 'tii^  fesiir«Aatt  ^fieeaJiaqit^ 


54  ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 

factured  in  Argentina  or  Paraguay  and  the  importation  of  que- 
bracho logs  into  the  United  States  prohibited,  it  would  save  the 
transportation  of  about  65,000  tons  of  lo^s  per  annum.  The  logs 
weigh  78  pounds  to  the  cubic  foot.  While  the  liquid  quebracho 
extract  could  be  produced  in  the  Argentine  factories,  containers  are 
not  available  for  its  transportation  to  the  United  States. 

On  account  of  the  durability  of  quebracho  wood  it  is  widely  used 
in  Argentina  for  railroad  sleepers  and  fence  posts,  having  a  life  of  40 
years  or  more.  So  hard  is  the  wood  that  the  Spanish  name,  meaning 
"ax  breaker,"  is  applied  to  it.  The  wood  and  extract  constitute 
the  wealth  of  the  northern  regions  of  Argentina,  and  the  supply  is 
extensive.  The  annual  cut  of  quebracho  is  much  less  than  the  sum 
total  of  the  annual  growth.  The  total  available  supply  is  estimated 
at  168,000,000  tons;  less  than  1,000,000  tons  are  cut  annually  at 
present. 

QUEBRACHO  EXTRACf . 

In  1889  the  reduction  of  the  cjuebracho  wood  to  chips  and  sawdust 
and  the  extraction  of  the  tannin,  which  is  used  mainly  for  tanning 
leather,  began  on  a  comm^ercial  basis  in  Argentina.  Since  then  the 
manufacture  of  quebracho  extract  has  developed  to  a  position  of 
second  importance  among  the  manufactiiring  interests  of  Argentina. 
Half  a  ton  of  quebracho  yields  extract  equivalent  to  the  extract  of  2 
tons  of  oak  bark.  The  chipping  and  slivering  are  performed  by 
large  rotary  disk  cutters,  which  prepare  the  wood  for  the  boiling 
vats.  After  boiling  for  two  and  one-half  to  three  hours  the  solution 
is  carried  into  vacuum  pans.  From  the  pans  the  extract  is  with- 
drawn into  wooden  boxes,  and  when  cooling  it  forms  into  cakes  the 
shape  of  the  box.  The  jute  bags  which  are  used  for  the  export  of 
the  extract  are  just  large  enough  to  hold  one  of  these  cakes,  weighing 
125  pounds.  The  machinery  used  in  this  industry  is  nearly  all  of 
German  origin,  though  England  has  furnished  some. 

The  potential  production  of  quebracho  extract  by  the  18  companies 
operating  in  Argentina  (and  Paraguay)  is  about  230,000  metric  tons 
per  annum.  In  1917,  out  of  an  actual  production  of  117,007  tons, 
the  exportation  amounted  to  90,777  tons.  About  80  per  cent  of  the 
extract  produced  by  these  countries  is  handled  by  the  Forestal 
Land,  Timber  &  Railway  Co.,  which  is  now  entirely  controlled  by  the 
British,  German  interests  having  been  suppressed  or  controlled. 
This  company  owns  nearly  5,000,000  acres  of  forest  land,  operates 
over  200  miles  of  railroad,  maintains  many  barges  and  tugs,  and  has 
nearly  15,000  employees  on  the  pay  roll.  With  its  capital  of 
$14,475,000,  it  is  the  largest  producer  of  quebracho  extract  in  the 
country  and  purchases  the  output  of  several  smaller  concerns,  thus 
controlling  the  output  and,  to  a  large  extent,  the  prices.  Besides  its 
own  annual  output  of  90,000  tons,  known  as  the  ''  Corona"  brand,  the 
company  purchases  probably  25,000  tons  yearly.  It  purchased  the 
Argentine  Quebracho  Co.  and  the  New  York  Canning  Extract  Co. 
and  operates  factories  at  Villa  Guillermina,  Villa  Ana,  Tartagal, 
Gallareta,  and  Santa  Felicia.  In  1917  the  Forestal  Land,  Timber  & 
Railway  Co.  raised  the  price  of  quebracho  extract  to  $190  per  ton; 
^  but  early  in  1918  the  smaller  companies  refused  to  permit  this  con- 
cern to  control  their  output;  so  the  price,  through  competition,  fell 
to  $90  per  ton.  The  lack  of  shipping  in  1918  caused  a  decline  in 
exports  and  lowered  the  price. 


ECONOMIC  POSITION   OF  ARGENTINA   DURING  THE   WAR. 


55 


The  export  of  the  extract  in  1908  was  48,162  tons,  the  principal 
customers  being  Germany  and  the  United  States.  From  1909  to 
1913  the  exports  averaged  72,985  tons,  valued  at  $4,506,734,  and 
amounted  to  87,662  tons,  valued  at  $4,775,698,  in  1913.  In  1917 
the  Republic  exported  90,777  tons.  The  United  States  purchases 
annually  more  than  40  per  cent  of  the  extract. 

The  quebracho  industry  derived  immediate  benefit  from  the  war. 
In  1913  the  United  States  was  the  leading  customer  for  quebracho 
extract  and  took  28,402  metric  tons,  which  was  39  per  cent  of  the 
total  amount  exported.  The  demand  for  leather  in  the  belligerent 
countries  created  a  corresponding  demand  for  the  extract.  Out  of 
the  total  exports  of  80,153  tons  in  1914  and  100,213  tons  in  1915  the 
United  Kingdom  took  50,798  and  66,244  tons,  respectively.  The 
United  States  followed  with  13,144  tons  in  1914  and  12,307  tons  in 
1915.  During  the  first  six  months  of  1918  the  United  States  im- 
ported from  Argentina  16,644  tons  of  extract,  which  was  42  per  cent 
of  the  total  amount  exported  from  Argentina  in  that  year. 

The  following  table  shows  Argentina's  exports  of  quebracho  extract 
during  the  war: 

Exports  op  Quebracho  Extract,  1913  to  June,  1918.* 
[Quantities  in  tons;  real  values  in  United  States  currency.^] 


Countries  of  destination. 

1913 

1914 

1915 

Quantity. 

Value. 

Quantity. 

Value. 

Quantity. 

Value.      . 

Germany 

6,705 
6,519 
6,241 

$344,142 
392,873 
375,884 

4,054 
3,643 
1,907 

$244,490 
219,750 
115,046 

Austria-Hungary 

Belgium 

Brazil 

32 
1,266 
12,307 
4,224 
7,281 

$6,123 
212  511 

Spain     . 

394 

28,402 

3,563 

3,222 

283 

520 

25 

13,192 

9,192 

580 

567 

23,736 

1,710,018 

214,549 

193,834 

16,926 

31,221 

1,500 

794,945 

554,856 

34,807 

34,274 

213 

13, 144 

1,132 

1,919 

13,062 
825,217 

68,258 
123,226 

United  States 

2,089*462 
664,859 

France 

Italy 

1,220,561 

Japan. 

Net>iprlftnds  .   . 

895 

177,063 

Peru . . 

United  Kingdom 

13,696 

37,102 

10 

2,000 

863,909 

2,324,203 

603 

128,758 

66,244 

9,842,590 

United  Kingdom  (p.  o.) 

Russia 

Sweden . . . 

6,014 

647,033 

Turkey 

Uruguay  . 

1,279 

77,010 

1,130 
30 
173 

66,083 

1,809 

10,987 

573 

230 

1,502 

600 

45 

93,822 

44,801 

219,950 

90,127 

8,902 

Chile.  .^.:::;::::::::;:::::;::: 

Norway 

Denmark 

Portugal 

Boliva 

South  Africa 

............ 

Switzerland 

Total... 

79,684 

4,800,575 

80,153 

5,005,401 

100,213 

15,317,804 

1  Source:  El  Comercio  Exterior  Argentino. 

*  Value  converted  to  United  States  currency  on  the  basis  of  $0,965  throughout. 


56 


EOONOMtC  POSITION   OF  ARGENTINA   DURING  THE  WAR. 


Exports  op  Quebracho  Extract,  1913  to  June,  1918 

—Continued. 

Countries  of  destination. 

1916 

1917 

1918,  Jan.- June. 

Quantity. 

Value. 

Quantity. 

Value. 

Quantity. 

Value. 

Germany. 

Austria-Hungary 

- 

Belgium 

Brazil 

126 

694 

24,693 

3,572 

11,282 



209 

1,573 

30,527 

9,620 

12,926 

249 

295 

136 

16,644 

7,099 

5,913 

862 

Spain...                   

United  States 

France 

Italy 

Japan 

Netherlands 

449 

Peru 

34,096 



21,280 

8,764 

United  Kingdom  (p.  o.)-.  -  . 

Russia 

is,  762 

3,777 



250 

Turkey 

Uruguay 

516 

155 

1,738 

2,016 

697 

1 

10,218 

408 

1,923 

849 

450 

469 
249 

Chile 

Norway 



Portugal 

Bolivia 

South  Africa 

43 
252 

72 

Switzerland...  .         

Total 

97,574 

$18,974,890  1          90.777 

$13,645,303 

40,503 

$4,254,702 

' 

FIREWOOD. 

Most  of  the  material  for  firewood  grows  in  the  northern  undevelop- 
ed regions  of  the  Provinces  served  by  the  narrow-gauge  State  rail- 
ways. Woods  have  always  been  used  extensively  as  fuel  in 
homes,  and  during  the  war  have  been  used  on  railways.  However, 
the  number  of  fires  in  the  wheat  fields  caused  by  wood  sparks  prove 
the  unsuitability  of  wood  to  the  railways  save  as  makeshift  fuel. 

In  1917  the  narrow-gauge  State  railroads  had  a  monthly  carrying 
capacity  of  600,000  tons  of  wood.  At  the  ratio  of  3  tons  of  wood  to 
1  ton  of  coal,  this  supply  furnishes  the  equivalent  of  200,000  tons  of 
coal  a  month,  or  2,400,000  tons  a  year,  a  satisfying  result  if  it  were  an 
ideal  fuel.  In  the  Province  of  Santa  Fe  one  railway  transports 
150,000  tons  of  wood  per  month;  the  Province  of  Santiago  del  Estero 
can  not  obtain  transportation  for  its  accumulated  stock  of  wood. 

Firewood  was  exported  from  Argentina  in  large  quantities  in  1917. 
In  that  year  172,538  tons  left  the  Republic,  with  a  value  of  SI ,  1 21 ,306, 
the  figures  for  1916  being  12,613  tons  and  $112,465. 

The  scarcity  of  wood  in  1918  was  due  to  the  congestion  of  trafiic  on 
the  State-owned  railways,  and  this  was  caused  largely  by  the  irreg- 
ularities practiced  by  the  managers  of  these  railways  in  leasing  cars 
to  certain  firms  to  the  prejudice  of  the  general  public.  However,  the 
exports  of  firewood  m  the  first  six  months  of  1918  amounted  to 
109,506  tons,  valued  at  $683,544. 

At  the  beginning  of  1917  wood  fuel  sold  at  $9.76  per  ton,  the  early 
part  of  1918  at  $17  to  $18.70,  and  the  latter  part  of  1918  at  $21.23  to 
$33.97. 

CONCLUSION. 

Why  is  Argentina  not  independent  of  the  world  for  her  lumber 
supply  ?  The  lack  of  railroads,  the  lack  of  sufficiently  large  rivers  in 
the  wooded  sections,  and  the  bad  condition  of  the  roads  have  re- 
tarded this  industry.  The  methods  of  lumbering  are  crude,  costly, 
and  wasteful.     As  much  as  60  per  cent  of  the  timber  felled  is  wasted. 


V.  MINERALS. 

DEVELOPMENT  OF  MINING  INDUSTRY. 

Argentina  has  always  concentrated  its  efforts  upon  agriculture  and 
cattle  raising  and  has  paid  little  attention  to  other  industries.  The 
lack  of  transport,  the  scarcity  of  labor,  and  the  absence  of  natural 
motive  forces,  together  with  the  more  favorable  economic  position 
of  agricultural  and  animal  industries,  have  tended  to  retard  the 
development  of  new  industries  in  mineral  and  other  products.  The 
mineral  resources  of  Argentina  must  therefore  be  considered  as 
sources  open  to  future  development,  rather  than  actual  large  con- 
tributors to  wealth  at  the  present  time. 

There  are  mineral-bearing  regions  over  the  whole  eastern  slope 
of  the  Andes,  extending  from  Bolivia  to  Tierra  del  Fuego. 

The  Argentine  Government  during  the  past  four  years  has  stimu- 
lated interest  in  mining,  especially  gold,  silver,  and  copper.  An 
aerial  railway,  one  of  the  greatest  pieces  of  engineering  in  the  world, 
w^as  built  by  the  Government  to  exploit  the  ridi  mines  of  Famatima. 
situated  in  the  Province  of  La  Rioja. 

The  Government  has  introduced  very  liberal  laws  concerning 
mines.  The  State,  instead  of  exploiting  the  mmes  itself,  grante 
concessions  to  individuals  who  prove  themselves  capable  of  admin- 
istering their  own  property.  To  acquire  a  claim,  a  written  demand 
is  presented,  describing  exactly  the  location  and  the  nature  of  the 
property  demanded,  giving  a  detailed  account  of  its  discovery  and 
any  other  useful  information,  together  with  a  sample  of  the  mineral. 
The  claimant  has  full  ownership  of  his  mine  after  the  Government 
has  decided  upon  the  right  of  priority  and  has  made  a  survey  of  the 
property. 

The  mine  and  its  products  are  untaxed,  whether  sold  at  home  or 
abroad.  An  obligation  upon  the  mine  operator  is  that  he  work  his 
claim  with  at  least  4  laborers  during  230  days  of  the  year.  If  this 
condition  be  not  fulfilled,  another  person  may  demand  the  concession 
of  the  abandoned  mine. 

The  result  of  this  action  of  the  Government  is  that  several  impor- 
tant limited  mining  companies  have  been  formed  which  have  ob- 
tained good  results  and  various  railway  systems  have  been  extended 
to  the  mining  districts. 

Petroleum  and  w^olfram  are  considered  by  Mr.  W.  H.  Robertson, 
United  States  consul  general  at  Buenos  Aires,  as  the  most  important 
of  the  mining  -products  of  Argentina.  The  demand  for  mica  was 
stimulated  in  1917,  resulting  in  further  development  of  this  resource. 

PETROLEUM. 

Although  the  national  deposits  of  petroleum  in  the  Argentine 
Provinces  are  little  exploited,  the  Board  of  Mines  and  Geology  has 
determined  the  region  in  w^hich  this  mineral  product  is  located.  On 
account  of  the  value  of  petroleum  as  a  substitute  for  coal,  its  develop- 
ment will  tend  to  make  Argentina  more  independent  of  imported  f uefc. 

57 


58  ECONOMIC   POSITION    OF   ARGENTINA   DURING   THE   WAR. 

At  present,  however,  heavy  imports  of  petroleum  products  are 
assured.  The  imports  of  petroleum  and  its  products  increased  from 
191,378  tons  in  1913  to  300,027  tons  in  1917.  Argentina  has  also  re- 
ceived heavy  imports  of  kerosene,  the  United  States  furnishing  prac- 
tically the  total  imports. 

One  of  the  four  petroleum  districts  is  in  the  Province  of  Mendoza, 
at  the  base  of  the  Cordillera  Range;  a  second  district  is  located  in 
the  tar  and  asphalt  zone  of  Mendoza  and  Neuquen;  a  third  is  along 
the  Patagonian  coast,  near  Comodoro  Rivadavia ;  and  a  fourth  is  the 
Salta-Jujuy  field.  The  fields  of  Mendoza  were  the  first  to  be  ex- 
ploited and  were  surveyed  in  1886. 

The  zone  of  Comodoro  Rivadavia,  situated  on  the  coast  about  850 
miles  south  of  Buenos  Aires,  contains  the  greater  part  of  the  petro- 
leum wealth  of  the  Republic.  In  spite  of  the  fact  that  it  is  the  most 
accessible  and  the  only  region  exploited  to  any  considerable  extent 
and  was  discovered  years  ago,  little  headway  in  scientific  knowledge 
and  productive  efficiency  has  been  made.  There  are  18  weUs  being 
exploited,  producing,  respectively,  from  35  to  2,859  cubic  meters  of 
oil  per  month.  One  of  the  weUs  gives  180  tons  daily,  which  can  be 
sold  approximately  $60  per  ton,  with  a  profit  of  $41. 

The  Comodoro  Rivadavia  weUs  are  controlled  and  operated  by 
the  Government  for  the  purpose  of  using  the  oil  extensively  for  the 
navy,  ^t  is  not  probable  that  Government  control  wiU  be  released. 
There  are  several  private  companies  exploiting  the  oil  fields  which 
are  outside  the  Comodoro  Rivadavia  district,  but  their  output  is 
ven^  small. 

The  oil  of  the  Government  wells  is  heavy  and  has  an  asphalt  base. 
On  distillation  it  yields  1.5  to  3.5  per  cent  of  naphtha  and  gasoline, 
15  tp  19  per  cent  of  illuminating  oils,  and  77  to  85  per  cent  of  lubri- 
cants, fuel,  and  coke.  It  is  most  useful  as  a  fuel  to  be  used  as  a  sub- 
stitute for  coal. 

The  oil  of  the  other  three  fields  is  lighter  than  that  of  Comodoro 
Rivadavia ;  it  has  a  paraffin  instead  of  an  asphalt  base.  Samples  from 
these  districts  give  5  per  cent  of  light  oil,  30  per  cent  of  kerosene,  and 
52  per  cent  of  lubricating  oil. 

Although  the  policy  oi  the  Government  with  regard  to  increasing 
the  output  of  petroleum  is  one  of  conservation  as  well  as  exploitation, 
and  the  Government  is  guarding  against  the  policy  of  working  the 
fields  to  such  an  extent  that  a  considerable  exportation  would  result, 
yet  the  increase  of  production  has  been  large.  The  amount  of  oil 
produced  was  101  United  States  barrels  in  1907,  1,147,000  barrels 
in  1917,1  and  299,660  barrels  from  January  to  March,  1918.  The 
Government  has  authorized  the  issue  of  bonds  to  the  value  of 
$6,500,000,  to  be  used  in  increased  exploitation  of  these  fields.  The 
increased  output,  however,  assisted  only  partly  in  restoring  fuel 
conditions  to  normal.  Present  indications  are  that,  unless  more 
profitable  wells  are  developed,  the  oil  output  will  not  meet  domestic 
needs.  Imports  of  petroleum  increased  during  the  war,  as  shown 
in  the  following  table  and  graph  No.  10. 

» Less  than  0.2  per  cent  of  world  production  in  that  year. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR.  59 

Production  and  Consumption  of  Petroleum  in  Argentina,  1912-1917. 


Years. 

Imports. 

Per  cent. 

Produc- 
tion. 

Percent. 

Consump- 
tion. 

Percent. 

1912 

Metric  tons. 
143,817 
191,378 
161,462 
306,955 
304, 115 
300,027 

100 

Metric  tons. 

6,268 

17,416 

36,733 

68,876 

160,000 

200,000 

100 

Metric  tons. 
150,085 
208,794 
198,195 
375,831 
464, 115 
500,027 

100 

1913 

1914                                

1915                                           

1916 

1917                                         

208 

3,190 

333 

KRaPW     Na.   lo 


M  Ports,  Pf?oDucTtoN  &  CoN^un  ption 

OF      pETTROLEun 
IN  AfTG-ENTlNA     _  l<1lX-l*^ir. 


ThoosaSoS  of 
METRIC  Tons 


\^\% 


ni3 


ISM 


n  is- 


ms 


I'?  IT 


Consumption  of  petroleum  increased  during  the  war  from  208,794 
metric  tons  in  1913  to  500,027  metric  tons  in  1917.  At  the  same 
time  the  imports  of  coal  were  cut  down  from  4,046,278  metric  tons 
in  1913  to  707,712  metric  tons  in  1917.  The  lack  of  shipping  to 
bring  coal  from  England  or  the  United  States  resulted  in  an  acute 
fuel  shortage  in  Argentina  during  the  war.  Firewood  was  more 
used,  as  has  been  pointed  out,  and  corn  was  also  commonly  used  as 
a  fuel  in  homes.  The  increased  production  and  imports  of  petroleum 
doubtless  helped  the  condition,  but  they  did  not  completely  solve  the 
acute  fuel  situation  which  was  forced  upon  Argentma  by  the  war. 
The  increased  production  and  imports  of  petroleum  did  not  meet 
the  demand  sufficiently  to  keep  down  the  price.  The  table  follow- 
ing indicates  that  a  considerably  larger  supply  of  petroleuni  could 
have  been  disposed  of  in  Argentina  had  it  been  available  during  the 
war. 


/ 


60  ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

Prices  of  Petroleum  in  Argentina.^ 

[United  States  currency.] 

Per  ton. 
Shortly  after  declaration  of  war , $10.  62 

March,  1916.. {  IJ;  ^0 

April,  1916 25.  48 

February,  1917 29.  72 

October,  1917 36. 09 

December,  1917 40.  34 

February,  1918 46.  70 

May,  1918 50.  95 

July,  1918 2  55  20 

According  to  a  statement  made  in  the  Standard  Daily  Trade  Serv- 
ice, Volume  IV,  item  1025,  the  cost  to  the  Government  from  April 
to  July,  1918,  of  oil  per  cubic  meter  placed  in  Buenos  Aires  was  $8.94. 
This  amount  included  the  cost  of  a  cubic  meter  at  the  well,  $5.10; 
the  embarkation  cost  at  Comodoro  Rivadavia,  $0.40;  transportation 
from  Comodoro  Rivadavia  to  Buenos  Aires,  $3.22;  and  storage  and 
handling  at  Buenos  Aires,  $0.22.  The  cubic  meter  yields  925  liters; 
so  it  is  calculated  that  the  cost  per  ton  of  petroleum  placed  in  Buenos 
Aires  was  $9.65.  The  Government  in  February,  1918,  charged  $46.70 
per  ton  and  produced  the  oil  at  $9.65  per  ton,  thus  making  a  profit 
of  $37.05,  or  260  per  cent.  The  estimated  yield  for  1918  was  200,000 
tons,  which  was  salable  at  a  profit  of  at  least  $37  per  ton.  This 
income  of  $7,400,000  (United  States  currency)  can  be  used  to  meet 
the  extra  wartime  expenditure  and  will  cause  a  reduction  in  the  rate 
of  taxation  within  Argentina. 

The  importers  of  petroleum  have  made  large  profits.  The  cost  to 
the  Anglo-American  Petroleum  Co.  of  crude  petroleum  which  it  sold 
in  Argentina,  including  transport  and  other  expenses,  did  not  exceed 
$19  per  ton.  Selling  it  at  $60  per  ton,  a  clear  profit  of  $41  was  made. 
The  Government  expects  to  increase  the  output  of  its  wells  to  such  an 
extent  that  the  importation  of  petroleum  will  no  longer  be  necessary. 

COAL. 

The  coal  and  iron  deposits  of  Argentina  are  distributed  over  a 
region  of  thousands  of  miles.  They  are  in  the  ranges  of  the  Cordil- 
lera, 4,000  to  5,000  feet  above  sea  level,  over  900  miles  from  the  coast 
and  far  from  roads  or  waterways.  The  natural  motive  force  of  that 
district  is  of  no  assistauce  to  miners,  there  being  only  a  few  waterfalls 
in  Cordoba  and  Tucuman.  Coal  mining  is  being  developed,  especially 
in  the  Province  of  Mendoza,  and  it  appears  that  although  the  output 
is  still  small,  Argentina  will  be  able  in  the  near  future  to  supply  its 
own  needs  and  also  those  of  the  neighboring  States.^ 

According  to  a  report  of  Consul  General  Robertson,  made  in  July, 
1917,  valuable  coal  deposits  have  been  discovered  near  Lake  Epupen, 
in  the  Territory  of  Chubut,  within  124  miles  of  the  railway  at  San 
Antonio.  The  deposits,  which  are  near  the  surface,  are  extensive, 
of  considerable  thickness,  and  of  high  quality.  In  order  to  develop 
these  deposits,  transportation  by  means  of  trucks  from  San  Antonio 

1  Sources:  Report  of  Consul  General  Robertson,  Oct.  24,  1918;  Review  of  the  River  Plate,  Aug.  9,  1918; 
Daily  Review  of  the  Foreign  Press,  Nov.  27, 1918. 

2  $55.20  per  ton  in  bulk;  $56.05  per  ton  in  barrels  belonging  to  the  buyer;  $57.32  per  ton  in  barrels 
belonging  to  the  Government. 

»  Pitman's  Encyclopaedia,  Vol.  I,  p.  100. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR. 


61 


to  Maquichao  will  be  established.  A  decree,  dated  May  15,  1917, 
was  issued  giving  the  management  of  the  local  Government  railroads 
the  power  to  invest  $16,800  for  the  purchase  of  native  coal  to  be 
taken  from  the  Epupen  coal-mining  properties. 

Senor  Enrique  M.  Hermitte,  Director  of  Mines  and  Geology  of  the 
Ministry  of  Agriculture,  stated  that  early  in  1917  coal  mines  were 
found  in  the  Province  of  Santa  Cruz.  The  samples  of  this  Santa  Cruz 
coal  indicate  contents  of  volatile  matter,  fixed  coal,  and  ash  that  will 
bear  comparison  with  the  best  European  fuel.  Owing  to  the  failure 
of  the  Government  to  appropriate  funds,  the  economic  aspects  of  the 
Patagonian  coal  deposits  have  not  been  studied. 

Before  the  war  the  manufacturing  plants,  the  tramway  and  lighting 
plants  of  the  large  Argentine  cities,  and  especially  the  extensive  rail- 
way system  depended  upon  imported  coal  for  their  maintenance. 
More  than  95  per  cent  was  furnished  by  Great  Britain,  because  its 
ships  departing  to  obtain  the  grains  could  well  afford  to  offer  low  rates 
on  the  coal  rather  than  leave  in  ballast. 

The  following  table  shows  the  decreased  imports  of  coal,  and,  since 
the  domestic  output  is  very  small,  the  table  indicates  the  reduction 
in  consumption  forced  upon  Argentina  by  the  war: 

Imports  of  Coal,  1912-1918. 


Countries  of  ori- 
gin. 

1912 

1913 

1914 

1915 

1916 

1917 

1918 
(3  months.) 

Germany 

Metric  tons. 

56,450 

4,759 

115,901 

3,499,989 

30,857 

Metric  tons. 

9,713 

2,185 

56,206 

3,977,650 

524 

Metric  tons. 
4,766 

Metric  tons. 

Metric  tons. 

Metricians. 

Metric  tons. 

Belgium 

United  States 

United  Kingdom . 

169,786 

3,242,519 

4.455 

1  651, 747 

1921,969 

I  327, 133 

159,811 

Other  countries. . . 



Total 

3,707,956 

4,046,278 

3,421,526 

2,543,887 

1,884,781 

707, 712 

138,171 

y 


»  Figures  from  United  States  reports.    If  these  figures  are  subtracted  from  the  totals,  the  remainders 
are  within  a  few  thousand  tons  of  the  imports  from  the  United  Kingdom. 

At  the  beginning  of  1917  the  coal  situation  was  serious;  the  prices 
were  quoted. at  about  $31  per  metric  ton  of  2,204  pounds,  and  they 
rose  by  the  middle  of  June,  1918,  to  $50.  This  produced  a  serious 
state  of  affairs  for  the  railroad  industries  and  the  other  domestic 
needs.  Unjust  speculation  has  gone  on  in  other  fuels,  i.  e.,  charcoal, 
firewood,  and  petroleum.  Shortly  after  the  end  of  1917  charcoal 
sold  for  $50.95  per  ton,  rising  later  to  $55.20.     At  the  beginning  of 

1917  firewood  was  listed  at  $9.76  per  ton,  and  in  the  latter  part  of 

1918  the  price  jumped  to  $33.97.  Petroleum,  shortly  after  the  war 
began,  brought  $10.62  per  ton,  while  in  July,  1918,  it  had  risen  to 
$55.20,  sold  m  bulk,  and  $57.32,  sold  in  barrels. 

Radical  changes  must  have  taken  place  within  the  Republic  in 
order  to  adjust  conditions  to  the  decreased  fuel  supply.  Since  the 
undeveloped  coal  mines  are  removed  from  means  of  transportation, 
strenuous  efforts  were  made  to  develop  the  oil  fields  and  facilitate 
the  lumbering  of  the  northern  forests.  But  the  shortage  was  so 
enormous  that  the  Allies  feared  that  food  supplies  could  not  be 
moved  to  the  coast  cities  for  shipment.  The  agreement  proposed 
in  the  autumn  of  1918  provided  coal  allotments  to  the  South  American 
countries.     Argentina  was   to   receive    1,000,000   tons  from  Great 


62  ECONOMIC  POSITION  OF  AKGENTINA  DUKING  THE  WAR. 

Britian,  the  greatest  purchaser  of  its  products.  On  the  other  hand, 
the  United  States,  who  has  been  sending  so  many  ships  for  Chilean 
nitrates  and  BraziHan  rubber  and  coffee,  was  assigned  to  furnish 
assistance  to  these  countries.  With  the  resumption  of  normal  con- 
ditions heavy  coal  imports  will  again  reach  Argentina  from  Great 
Britian.  As  our  imports  of  Argentine  meats  and  wool  increase  the 
United  States  is  likely  to  obtain  more  and  more  of  this  coal  trade. 
The  outbound  vessels  will  prefer  to  carry  coal  at  low  rates  rather  than 
to  go  in  ballast. 

It  will  therefore  probably  be  a  good  many  years  before  the  coal 
resources  of  Argentina  will  be  extensively  exploited. 

WOLFRAM. 

Practically  the  entire  production  of  Argentine  wolfram  is  exported. 
In  1917  the  exports  amounted  to  2,175,119  pounds,  valued  at  $816,- 
623.  This  represented  an  increase  over  1916  of  498,749  pounds,  but 
a  decrease  in  value,  on  account  of  lower  prices,  of  $198,149.  In  the 
first  six  months  of  1918  there  were  exported  862,987  pounds  of  wol- 
fram, of  a  value  of  $299,425.  All  of  this  wolfram  went  to  the  United 
States  or  to  the  other  allied  countries.  The  above  values  are  given 
in  terms  of  United  States  currency,  quoted  from  a  report  by  Consul 
General  Robertson  made  in  October,  1918. 

MICA. 

Most  of  the  mica  produced  in  Argentina  has  been  exported  to  the 
United  States,  the  amount  having  increased  yearly.  In  1916  a 
quantity  of  11,257  pounds,  at  a  value  of  $3,746,  was  exported;  it 
was  increased  in  1917  to  154,305  pounds,  at  a  value  of  $41,007.  In 
the  first  six  months  of  1918  shipments  of  261,228  pounds  were  made, 
at  a  value  of  $71,569. 

The  exploitation  of  mica  in  Argentina  does  not  constitute  an  es- 
tablished mdustry,  but  is  made  by  many  private  individuals,  accord- 
ing to  the  fluctuations  of  the  market.  An  increasing  interest  in  the 
production  of  this  mineral  is  very  noticeable,  and  it  is  known  that  the 
supply  is  abundant,  especially  in  the  Provinces  of  Cordoba,  San  Luis, 
and  San  Juan. 

The  mica  shipped  to  the  United  States  is  both  clear  and  spotted, 
laminated,  and  beveled.  The  iron  which  has  been  found  in  com- 
position with  the  mica  would  render  it  prone  to  explosions  if  used 
for  electrical  purposes. 

One  of  the  Buenos  Aires  exporters,  in  September,  1917,  was  pre- 
pared to  supply  for  export  to  the  United  States  sheet  mica  up  to 
11,000  pounds  per  month,  placed  on  the  dock  alongside  vessel.  The 
sheets  varied  in  size  from  5  to  47  square  inches,  with  prices  per  sheet 
ranging  accordingly  from  $1.70  to  $8.30  (United  States  currency)  for 
the  clear  mica  and  from  $0.58  to  $5.93  for  the  spotted.  The  best 
quality  did  not  contain  iron,  and  any  spotting  was  due  to  vegetable 
action. 

The  price  of  mica  increased  from  25  to  30  per  cent,  owing  to  the 
fact  that  four  or  five  German  houses  collected  and  held  the  mica  in 
reserve  for  the  purpose  of  preventing  its  exportation. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 


63 


OTHER  MINERALS. 

Other  minerals  and  mineral  products  found  in  Argentina  are  gold, 
silver,  copper,  iron,  lead,  tin,  asphalt,  granite,  marble,  kaolin  or 
China  clay,  lime,  borate  of  lime,  onyx,  sulphur,  salt,  rock  crystal, 
bismuth,  borax,  antimony,  gypsum,  and  nitrates.  These  minerals 
have  been  exploited  to  a  very  small  extent,  principally  because  of 
the  lack  of  transportation  facilities,  railroad  construction  having 
been  largely  centered  in  the  agricultural  districts. 

Qrahh.  No  |l. 

ARGENTINA. 

IMPORTS  AND  EXPORTS  OF  MINERALS 

AND  MINERAL  PRODUCTS,  I913-MARCH  \$\&. 

BY  YEARS. 


TONS 
(000) 


3900 


525-0 


2600 


1950 


1300 


650 


\ 


\ 


I9»5 


\ 


-V 


\ 


T 


\ 


\ 


-V 


\ 


n 

V" 


1914- 


1515 


1916 


1917 


I9I8 


The  value  of  gold  produced  in  1900  was  $75,000,  and  that  of  silver 
$200,000. 

124236°— 20 5 


64 


ECOITOMIC   POSITION    OF   ARGENTINA   DURING   THE   WAR. 


The  principal  Provinces  of  Argentina  and  the  minerals  found  in 
each  are  as  follows : 

Minerals  in  the  Ten  Principal  Provinces. 


Provinces. 


Existent  minerals  and  mineral  products. 


Catamarea 
LaRioja.. 
SanJup.n. 

San  Luis . . 

Salta , 

Cordoba.., 

Tucuman. 
Mendoza.. 

Jujuy 

Neuquen.. 


Gold,  silver,  copper,  lead,  iron,  salt,  bismuth,  antimony,  and  mica. 

Gold, silver,  nickel,  tin,  coal,  rock  crystal,  salt.cobalt,  alum,  topaz  ,and  marble. 

Gold-bearing  q-uartz,  silver,  copper,  coal,  antimony,  iron,  lead,  sulphur,  salt, 

lime,  gypsum,  black  marble,  slate,  granite,  and  arnianthus. 
Gold,  sulphur,  salt, lead,  copper,  iron,  antimony,  marble,  manganese,  wolfram, 

onyx,  and  lime. 
Auriferous  quartz,  argentiferous  galena,  silver,  copper,  salt,  lime,  coal,  lignite, 

and  petroleum. 
Lime,  marble,  salt,  talc,  china  clay,  gypsum,  Iceland  spar,  fluorspar,  mica, 

beryl,  gold,  silver,  copper,  lead,  iron,  coal,  salt,  manganese,  wolfram,  onyx, 

porphyry,  and  alabaster. 
Silver  and  copper. 

Copper,  silver-bearing  galena,  gold-bearing  quartz,  slate,  marble,  coal,  ala- 
baster, antimony,  sulphur,  asbestos,  iron,  rock  crystal,  onyx,  salt,  asphalt, 

and  ijetroleum;  also  mineral  springs. 
Gold,  silver,  lead,  copper,  borax,  salt,  borate  of  lime,  lignite,  and  petroleum. 
Gold,  silver,  copper,  iron,  lead,  coal,  marble,  lime,  salt,  sulphur,  and  petroleum; 

also  mineral  springs. 


Location  of  the  Ten  Principal  Minerals. 


Minerals. 

Location  according  to  Province  or  Territory. 

Petroleum 

Salta,  Mendoza,  Jujuy,  Neuquen,  and  Chubut. 

Wolfram 

San  Luis  and  Cordoba 

Mica 

Gold 

Catamarea,  I^a  Rioja,  San  Juan,  San  Luis,  Salta,  Cordoba,  Mendoza,  Jujuy 
Neuquen,  Tierra  del  Fuego,  Santa  Cruz,  Chubut,  and  Misiones. 

Catamarea,  La  Rioja,  San  Juan,  Salta,  Cordoba,  Tucuman,  Mendoza,  Jujuy, 
Neuquen,  Los  Andes,  and  Misiones. 

La  Rioja,  San  Juan,  Salta,  Cordoba,  Mendoza,  Neuquen,  and  Misiones. 

Silver 

Coal 

Iron 

Catamarea,  San  Juan,  Mendoza,  Jujuy,  Neuquen,  Los  Andes,  and  Misiones. 

Marble 

Lead 

Catamarea,  San  Juan,  San  Luis,  Cordoba,  Jujuy,  Neuquen,  and  Misiones. 

TRADE  IN  MINERALS. 


Argentina's  exports  of  minerals  and  mineral  products  play  a  very- 
small  part  in  its  foreign  trade.  Imports  prior  to  the  war  were 
large,  consisting  largely  of  coal.  Graph  No.  11  shows  the  changes 
in  trade  in  minerals  during  the  war. 

Exports  of  Minerals  and  Mineral  Products,  1913-March,  1918, 


Minerals  and  countries  of  destination. 

1913 

1914 

1915 

1916 

1917 

1918, 
Jan.- 
Mar. 

Antimony 

Metric 
tons. 

Metric 
tons. 

Metric 
tons. 

Metric 
tons. 

Metric 
tons. 
3 

Metric 
tons. 

Chalk: 
Chile. . 

1 

8 

145 

90 

841 

Brazil 

Paraguay 

34 

278 

49 
3 
i 

Uruguay... 

Germany 

Total 

312 

53 

1,084 

1,032 

1,842 

240 

Copper  ore,  with  gold  and  silver. . . 

42 

Source:  El  Comercio  Exterior  ArgentiBO,  1913-1918. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR.  65 

Exports  of  Minerals  and  Mineral  Products,  1913-March,  1918 — Continued. 


Minerals  and  countries  of  destination. 

1913 

1914 

1915 

1916 

1917 

1918, 
Jan.- 
Mar. 

Copper  ores: 

Metric 
tons. 
131 
164 

Metric 
tons. 

Metric 
tons. 
67 

Metric 
tons. 

Metric 
tons. 

Metric 
tons. 

United  States 

TTnitfid  Kingdom 

4 

Total : 

295 

90 

6 

f 

71 

75 
145 
343 

410 

18 

Copper,  in  bars:  United  States 

Lead  ores:  France 

178 

Lead  and  silver:  United  Kingdom 

Lime: 

Chile 

13 
10 

1 

15 

7 

Bolivia 

3 
4 

10 
6 

7 
1 

12 
2 

Brazil 

Paraguay 

Uruguay 

Total 

23 

-       22 

46 

177 

76 

15 

Lime,  borate  of: 

Germany 

626 

160 

93 

55 

113 

150 

310 

40 

Belgium 

United  Kingdom 

150 
43 

Uruguay 

Total 

934 

613 

193 

86 

25 

Marble  onyx: 

Belgium 

348 
3 

141 

46 
8 

Brazil 

3 

France 

Uruguay 

18 

3 
2 

Chile 

Total 

369 

195 

8 

11 

29 

60 

Mica: 

Germany 

1 
2 
3 

1 

Belgium 

Unitftd  Kingdom-  - 

Total 

6 

1 

5 

70 

34 

Petroleum,  crude: 

United  States 

8 
2 

! 

1 
16 

Netherlands 

Paraguay 

United  Kingdom 

Sweden 

Uruguay 

Total 

28 

69 

206 

255 

Quartz:  Germany 

5 

10 

Salt,  coarse: 

Brazil 

7 

6 
123 
134 

Uruguay 

25 

Paraguay 

99 

Total 

25 

106 

263 

5,036 

23,040 

.685 

.4 

.5 

5 

6  299 

Fine  salt 

Silver  ores 

1 

Silver,  in  bars 

Tin  ore:  Germany 

1 

9 

Wolfram: 

Germany 

536 

392 
2 

United  Kingdom 

United  States 

158 

Total 

536 
63 

394 

158 

760 

987 
100 

210 

Zinc:  Belgium 

Grand  total... 

2,659 

1,390 

1,815 

7,748 

27,682 

7,166 

66  ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

Imports  of  Minerals  and  Mineral  Products,  1913-March,  1918.^ 
[Totals  in  long  tons.) 


Minerals. 


1913 


1914 


1915 


1916 


1917 


1918, 
Jan.- 
March. 


Aluminum:  Ingots 

Bronze:  Powder  for  lithographing 

Chalk 

Coal 

Copper  and  bronze:  Ingots  and  sheets. 
Gold: 

Grains,  paste,  dust 

Sheets  for  gold  plating 

Iron: 

Bars  and  small  plates 

Galvanized 

Ingots  and  sheets 

Plates 

Lead: 

Ingots  and  sheets 

Plates 

Mercury 

Metal:  Antifriction 

Petroleum 

Silver: 

Bars 

German:  Plates 

Sheets  for  plating 

Steel:  Ingots  and  sheets 

Tin:  Ingots  and  sheets 

Tin  plate: 

Crude 

Cut  for  wrapping 

Zinc: 

Ingots  and  bars 

Sheets,  smooth  or  rough 

Sheets  for  engraving 

For  wrapping 


19 
11 

2,305 
4,046,278 

1,190 


10 

13 

1,271 

,421,526 

823 


2,543,887 
367 


2 
12 
759 

1,884,781 
412- 


TOOA 

Not  listed 

91, 198 

186,576 


8,202 


-'1209 
191,378 

1 
35 

6,854 
596 

15,228 
1,635 

555 
2,850 

87 
38 


t88o 

38,579 
41,609 
2,452 
51,006 

8,337 

6 

2 

256 

161,462 

1 

26 

8,492 
406 

8,886 
1,660 

397 

995 

43 

12 


TWO 

14,041 
40, 657 
2,708 
15,315 

7,159 

1 

4 

103 

306,955 


4,365 
1,127 


17,573 
7,060 


458 

63 

2 


19,924 

14,809 

1,645 

18,077 

8,400 

:tthjt> 

7 

206 

304,115 

1 
1 

Toins 

1,750 

726 

20,463 
7,757 

4 

287 


21 

474 

707, 712 

311 

212,215 

18,438 
8,200 
3,173 

12, 775 

5,222 

136 
310,027 

1,214 
1,564 

21,086 
10,484 

'Ik 

51 

T*S0 


131 

138, 171 
63 

22,386 

1,441 
1,514 


2,543 
1,051 


24,250 


104 


3,306 
5,196 


Source:  El  Comercio  Exterior  Argentino,  1913-1918. 


2  Grams. 


VI.  MANUFACTURING  INDUSTRIES. 
DEVELOPMENT  BEFORE  THE  WAR. 

Except  for  meat  packing,  flour  milling,  the  dairy  industries,  and 
sugar  refining,  the  manufactures  of  Argentina  are  comparatively 
trifling  and  are  quite  insufficient  to  meet  local  demands.  To  meet 
the  needs  of  the  Kepublic,  immense  quantities  of  foreign-made  goods 
have  to  be  imported.  A  study  of  Argentina's  trade  reveals  clearly 
at  the  outset  the  general  economic  position  of  the  country  as  an 
exporter  of  foodstuffs  and  an  importer  of  many  types  of  manufac- 
tured articles,  such  as  clothing,  machinery,  railroad  equipment,  and 
hundreds  of  other  items  of  manufactured  goods. 

The  reasons  for  this  situation  lie  in  the  general  development  of 
the  country.  Argentina  is  a  comparatively  sparsely  populated  coun- 
try, with  great  agricultural  resources  which  yield  good  profits  upon 
comparatively  short  investments.  Capital  tends  to  be  attracted  to 
investments  yielding  the  largest,  surest,  and  quickest  profits.  As 
long  as  agriculture  and  stock  raising  combine  to  be  as  profitable  as 
they  are  the  greater  part  of  Argentine  capital  and  foreign  capital 
attracted  to  that  country  will  be  invested  in  those  resources  rather 
than  in  manufacturing. 

Manufacturing  industries  are  not  entirely  lacking,  however,  in 
Argentina,  and  a  considerable  development  has  taken  place  during  the 
last  quarter  of  a  century,  as  shown  oy  the  following  table  of  figures 
quoted  from  the  industrial  census  of  1895,  of  1910,  and  of  1913: 

Development  of  Argentine  Industries.^ 

[Values  in  United  States  dollars.] 


Years. 

Number 

of  estab- 

Ush- 

ments. 

Capital 
tnvested.2 

Production 

or  annual 

sales. 

Raw 
material 
consumed. 

Horse- 
power 
used. 

Number 
em- 
ployed. 

1895 

22,204 
31,988 
48,779 

$91,367,000 
309,226,232 
759,756,475 

$521,708,408 
791,260,627 

0) 

$302,671,312 

461,881,333 

27,227 
202,816 
678,757 

145,650 
329  490 

1910 

1913 

410^201 

1  Source:    Industrial  census  of  Argentina. 

2  Values  converted  from  Argentine  pesos  at  $0.3216  for  1895,  and  at  $0,425  for  1910  and  1913. 

3  Figures  not  available. 

The  industries  of  Argentina  (census  of  1913)  are  listed  in  the  follow- 
ing table,  showing  the  importance  of  the  various  lines  of  manufacture. 
The  values  in  Argentine  paper  currency  have  been  converted  into 
United  States  currency  at  the  rate  of  42.5  cents. 

67 


68 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


Industries. 


Number 
of  estab- 

Ush- 
ments 


Capital 
invested. 


Total  pro- 
duction. 


Raw  material 
consumed. 


Horse- 
power 
used. 


Meat-packing  houses 

Flour  mills 

Sugar  refineries 

Preparation  of  wine 

Bakeries 

Foimdries  and  metal  works. . . 

Cigarette  factories 

Dairies,  cheese  factories,  etc . . . 

Tailors 

Leather  shoes 

Sawmills 

Extracts  of  tarmin  and  prep- 
aration of  firewood. 

Jute  and  cotton  sacks 

Lithographers  and  printers — 

Breweries 

Carpentry,  painting,  and  horse- 
shoeing. 

Liquors 

Tanneries 

Woodworking 

Cotton  and  woolen  mills 

Furniture,  trunks,  and  tapes- 
try  

Leather  goods 

Brick  kilns 

Preparation  of  yerba  mate 

Soap  factories 

Clothing,  etc 

Chocolate  and  candy 

Wagons  and  carriages 

Macaroni  and  pastes 

Ice  and  aerated  waters 

Rope  and  cloth  shoes 

Match  factories 

Crackers  and  cakes 

Jewelry,  watches,  etc 

Hats 

Paper  and  cardboard  mills 

Alcohol 

Dressmakers 

Tinsmiths,  etc 

Preparing  and  refining  oil 

Fishing 

Coffee  roasters,  etc  .• 

Cigars  and  tobacco 

Confectionery 

Glass  factories 

Gas  fitters,  etc 

Cleaners  and  dyers 

Artistic  ironwork 

Petroleum  refineries 

Washing  wool 

Ore  smelting 

Preparation  of  salted  hides 

Construction  companies 

Paving  companies 

Light  and  power  companies. . . 

Grain  elevators 

Other 

Total 


13 

401 

44 

4,317 

3,242 

1,177 

55 

8,161 

3,083 

231 

305 


24 

938 

29 

4,681 


736 
81 

1,058 
986 
953 

31 
294 
448 
299 
1,270 
332 
742 
241 

16 
207 
769 

92 

11 
187 
674 
974 

22 
4 

54 
179 
185 

16 
353 
124 

35 
1 

10 

29 

8 

197 

14 
305 

19 
6.971 


$39,521,561 
36,878,953 
51,055,362 
77,658,543 
13,634,840 
25,389,184 
13,552,383 
42,833,791 
14,365,803 
9,126,084 
8,940,018 
33,212,346 

8,970,475 
12,338,093 
13,702,876 

9,970,046 

8,984,383 
8,396,155 
4,843,097 
9,155,267 

9,242,590 
5,349,305 
7,545,538 
3,137,775 
4,111,091 
5,698,993 
4,672,106 
6,437,754 
4,601,288 
7,973,585 
3,714,781 

975, 163 
2,800,278 
4,198,454 
2,671,231 
4,922,945 
3,935,447 
2,474,434 
1,930,730 
1,759,411 
1,957,295 
1,537,225 
1,579,330 
1,493,698 
2,479,875 
2,215,845 
1,478,283 

987,308 
3,187,500 

673, 731 
8,741,770 
68,425 
10,587,395 
3,853,914 
127,875,724 
8,641,962 
47.173,084 


$114,004,927 
63,282,112 
59,754,304 
36,248,745 
34,709,770 
24,987,634 
22, 471, 474 
22,439,524 
21,554,202 
20,884,830 
19,220,005 
17,778,903 

16,200,466 
15,409,435 
15,163,839 
15, 150, 120 

13,775,247 
13,655,719 
12,503  539 
10,722,594 

9,771,501 
9,746,658 
9,383,312 
9,328,448 
9,123,774 
8,772,495 
8,761,916 
8,519,085 
8,261,764 
7,290,659 
7,133,657 
5,951,700 
4,451,572 
4,098,250 
3,662,194 
3,616,611 
3,364,134 
3,300,508 
2, 878, 153 
2,750,706 
2,416,961 
2, 300, 725 
2, 162, 705 
2,024,445 
1,807,950 
1,803,173 
1,455,873 
1,434,744 
1,062,500 
1,038,545 
744,987 
209,950 


$98,109,228 
52,038,119 
34,438,136 
17, 449, 659 
19,236,188 
12,851,834 
6,553,601 
12,565,114 
14,750,637 
11,800,976 
14,059,505 


13,739,672 
5,380,739 
3,366,630 
6,257,618 

7,621,173 
8,933,491 
6,674,605 
5,993,741 

3, 798, 159 

5, 968, 603 

2, 126, 196 

5,327,953 

6,340,394 

4,420,091 

6,108,327 

3,698,430 

5,792,369 

2,772,847 

3,892,221 

1,508,819 

2,369,431 

1,922,813 

1,825,152 

1,914,971 

128,775 

1,110,719 

1,053,603 

1,987,128 

10,625 

1,542,618 

1,111,775 

1,126,378 

537,838 

702, 638 

201,358 

622, 541 

637,500 

748,255 

4,250 

169,788 


6,397,755 


$,056,876 


62,487,327 


33,614,817 


24,287 
26,531 
57,511 
14,651 

6,514 
14, 161 

1,191 

3,317 
34 

2,388 
13,514 
12,874 

1,248 
2,985 
8,680 
3,970 

1,518 
5,416 
6,906 

6,887 

2,206 

326 

2,090 

1,128 

964 

657 

2,337 

3,882 

4,216 

7,965 

1,097 

610 

588 

43 

1,298 

10,860 

1,456 

15 

133 

969 

17 

191 

95 

113 

269 

25 

1,031 

242, 

265 

885 

797 

55 

565 

140 

391,959 

6,137 

18,479 


48,779 


759,756,475 


791,260,627 


461,881,333 


678,757 


Source:  Commerce  Reports,  July  17, 1918. 

MANUFACTURING  INDUSTRIES  DURING  THE   WAR 

The  diverting  of  the  manufacturing  productive  j)ower  of  the  war- 
ring nations  to  war  activities  and  the  consequent  increase  in  prices 
and  decrease  in  supphes  of  practically  all  of  the  manufactured  com- 
modities normally  imported  oy  Argentina,  together  with  the  shortage 
of  ships,  forced  its  imports  to  decrease  greatly  during  the  war.  The 
result  to  be  expected  was  a  tendency  to  increased  domestic  produc- 
tion of  articles  which  it  manufactured  in  limited  quantities  and  to 
the  establishment  of  new  enterprises  for  producing  others  formerly 


ECOKOMiC  POSITIOK  OF  ARGENTINA  DURING  THE   WAR.         69 

entirely  imported.  Lack  of  capital,  iron,  and  domestic  coal  were  the 
chief  hindrances  to  the  growth  of  manufacturing  industries.  Other 
materials  necessary  in  manufacturing  also  had  to  be  imported. 
Argentina,  however,  found  it  cheaper  to  manufacture  some  articles 
during  the  war  that  were  imported  before  the  war.  It  also  exported 
to  the  warring  nations  large  quantities  of  woolen  blankets,  leather 
saddles,  boots  and  shoes,  alcohol,  etc.  The  manufacture  of  woolen 
blankets  and  boots  and  shoes  increased  several  hundred  per  centv 
during  1917  and  1918,  while  the  alcohol  industn^,  which  had  almost 
entirely  disappeared  because  of  the  high  cost  of  manufacturing,  has 
revived  and  alcohol  is  one  of  the  important  exports  of  the  country. 

When  the  source  of  supply  of  manufactured  goods  was  cut  off  by 
the  war  the  Republic  had  to  exploit  its  own  resources.  Sulphate  of 
aluminum  (concentrated  alum)  is  a  good  example;  it  is  now  being 
manufactured  locally  by  the  Federal  Government  imder  the  direction 
of  the  Ministry  of  PubHc  Works  and  is  used  extensively  in  the  pubHc 
water-filtering  plants.  It  was  formerly  almost  exclusively  suppHed 
by  Germany.  Sulphate  of  aluminum  is  found  in  the  Province  of 
Buenos  Aires  and  the  Territory  of  Pampa,  and  the  industry  is  capable 
of  supplying  the  nation's  annual  requirements,  amounting  to  about 
10,000  tons,  at  a  cost  less  than  it  was  formerly  customary  to  pay  to 
foreign  manufacturers. 

The  manufacture  of  algarroba  dye  material  is  also  a  new  industry 
which  was  started  in  1918.  It  is  used  locally  and  is  exported 
especially  to  the  United  States. 

Since  1914  a  number  of  new  quebracho-extract  plants  have  been 
established,  thus  greatly  increasing  the  output.  Tables,  chairs, 
bathtubs,  kitchen  utensils,  and  toys  are  made  in  Argentina. 
Although  they  are  not  as  finished  as  the  imported,  yet  they  are  as 
strong.  Cheaper  qualities  of  tumblers,  jugs,  and  lamp  chimneys  are 
manufactured. 

Statistics  of  industrial  development  are  not  available  for  the  war 
years,  the  census  of  1913  quoted  above  being  the  latest  source  of 
complete  information.  It  is  difficult  to  determine  the  extent  to 
which  Argentina  has  developed  industrially  as  a  result  of  war  condi- 
tions, and  opinions  vary  considerably.  Many  beheve  that  the 
development  has  been  great  since  the  year  1913  and  that  Argentina's 
production  of  manufactured  articles  has  increased  to  such  an  extent 
that  foreign  countries  wiU  find  competition  with  domestic  goods  a 
strong  factor  to  be  met  in  regaining  Argentine  markets  for  their 
exports. 

The  report  of  the  Director  General  of  Statistics  for  1917^,  on  the 
other  hand,  presents  an  analysis  of  Argentina's  imports  during  the 
war  years,' from  which  he  concludes  that  Argentina  has  not  attained 
industrially  as  much  as  is  generally  supposed.  The  analysis,  tables, 
and  a  chart  are  here  reproduced  for  what  they  are  worth,  since  they 
present  an  interesting  study  of  Argentina's  imports  and  since  they 
are  the  only  data  available  which  throw  Hght  upon  the  extent  of 
industrial  development  of  the  country  during  the  war. 

1  Intercambio  Econ6tnico  de  la  Repiiblica  Argentina,  1910-1917;  el  Comercio  Exterior  Argentino  en  1916 
y  1917,  Boletin  176,  pp.  93-100. 


70 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR. 


The  following  classification  of  imports  is  first  given,  in  order  to 
divide  those  which  indicate  industrial  expansion  and  those  which 
indicate  the  consumption  of  foreign  goods:" 

Imports  into  Argentina  for  1913-1917,  by  Value,  Classified  According  to  Their 

Economic  Significance.^ 


[Nominal  values  in  gold  pesos.] 

Groups  of  articles. 

Years. 

1913 

1914 

1915 

1916 

1917 

Necessities:  Foods  in  general,  textiles, 
drugs,  paper  articles,  leather,  furni- 

165,679,129 

31,528,397 
42,857,702 

72,382,710 
108,904,604 

115,901,055 

17,565,506 
36,434,799 

37,380,480 
64,536,060 

86,202,307 

13,396,296 
44,955,242 

48,662,134 
33,676,754 

106,391,992 

15,923,307 
2  25,043,691 

43,083,309 
26,967,023 

101,755,895 

13,366,968 
2  16,134,496 

35,830,990 
17,378,699 

Luxuries:  Jewels,  precious  stones,  per- 
fumery, silks,  furs,  tapestries,  to- 
bacco and  Havana  cigars,  fine  wines 
and  liquors,  preserves,  etc 

Materials  supplying  light,  heat,  and 
power:    Coal,  petroleum,  and  petro- 
leum products. 

Materials  for  the  maintenance  of  indus- 
tries:   Articles  for  agriculture  and 
stockyards;  seeds;  breeding  stock; 
textile  materials,  woven  or  raw;  in- 
dustrial   oils;     machine    supplies; 
lumber,  paints,  etc 

Materials  for  the  expansion  of  indus- 
tries and  establishment  of  new  enter- 
prises:   Materials  for  railroad  con- 
struction,   industrial    installations, 
etc 

Total              

421,352,542 

271,817,900 

226,892,733 

217,409,322 

184,467,048 

1  Source:   El  Comercio  Exterior  Argentino,  Boletin  176,  p.  94. 

2  Applying  in  1916  and  1917  estimated  values  which  held  in  the  former  years  up  to  1916,  these  amounts 
increased  to  39,598,801  gold  pesos  and  31,434,030  gold  pesos,  respectively. 

Note.— The  values,  "nominal  values,"  here  used  are  based  on  the  price  schedule  of  the  tariff  of  1906,  and 
changes  indicate  changes  in  quantity  and  not  in  true  values.    (See  note,  p.  6.) 


^v     Imports 

\       /TvV""""^ 

/expansion 

NECESSITIES            \                               /        0^\\\ 
'NDU«TI?I^\ 

\ 

NCCEssmcs  \ 

y/ii 

__J,---^                                            1917   —    1 

OF     HFC       / 
9^j^67^0A9   GOLD  Prsos 

I9I2«      38-4,85:3,-16  T      Goi-O    PESOS 

HOTr:        VALUES      ARE    NOMINAL  AND  CHAN6£5>THe|fEFoRe, 
INDICATE       CHAMG-rs      tfl     OoANTlTlES. 


The  general  tendency  of  all  these  groups  to  decrease  should  be 
first  noted.  The  grapt  ^  shows  more  clearly  that  the  articles  which 
are  classed  as  those  used  to  expand  or  establish  industrial  enterprises 


1  Copied  and  translated  from  El  Comercio  Exterior,  Boletin  176. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR.  71 

have  decreased  both  m  actual  amount  and  considerably  in  percent- 
age of  total  imports,  while  imports  of  necessary  articles  for  consump- 
tion, though  they  have  been  cut  considerably  during  the  war,  con- 
stituted a  much  larger  percentage  of  total  imports  in  1917  than  in 
1912. 

Although  at  best  the  division  of  all  imports  into  such  a  classi- 
fication can  only  approximate  the  truth,  the  analysis  is  probably 
accurate  enough  to  show  at  least  that  the  difficulties  of  importing 
goods  during  the  war  must  have  been  a  hindrance  as  well  as  a 
stimulus  to  mdustrial  development,  since  many  materials  necessary 
to  greater  development  had  also  to  be  imported. 

Tables  giving  further  details  regarding  three  of  the  groups  in  the 
above  classification  are  given  on  page  93  in  the  section  dealing  with 
the  nature  of  foreign  trade  during  the  war. 

Only  the  results  of  a  complete  mdustrial  census  can  determine  the 
development  of  manufactm-ing  industries  during  the  war.  Un- 
doubtedly many  industries  have  increased.  Whether  the  increase 
was  beyond  the  normal  tendency  and  whether  the  stage  of  develop - 
naent  reached  will  be  maintained  with  the  return  of  normal  con- 
ditions it  is  difficult  to  foretell.  Undoubtedly  the  tendency,  apparent 
before  the  war,  of  manufacturing  to  increase  will  continue  m  the 
future,  in  spite  of  the  difficulties  of  obtaining  capital,  fuel,  and  iron. 
It  is  certain,  however,  that  agricultural  and  animal  products  will 
be  the  dominating  sources  of  economic  wealth  and  the  field  for  enter- 
prise for  many  years  to  come. 


VII.  TRANSPORTATION. 
GENERAL  SITUATION. 

Argentina  is  a  large  country,  with  few  people  and  an  abundance 
of  bulky  natural  resources,  such  as  grains,  cattle,  and  lumber.  Con- 
ditions such  as  these  require  adequate  transportation  in  order  to  real- 
ize rapid  and  full  growth.  In  the  populous  central  section  of  the  Re- 
public natural  waterways  do  not  exist.  Railroad  development  in 
that  region  has  therefore  been  forced  into  rapid  growth.  The  char- 
acteristic feature  of  the  system  lies  in  the  importance  of  freight 
traffic  and  the  heavy  tonnage  during  certain  seasons  -of  the  year. 

RIVERS  AND  HARBORS. 

In  the  southern  or  Patagonian  Territories  many  rivers,  formed  by 
the  melting  snows  of  the  Andes,  flow  eastward  through  sheep-grazing 
regions  until  they  enter  the  Atlantic.  Situated  at  the  river  out- 
lets are  ports  whose  importance  depends  upon  the  richness  of  the 
hinterland  grazing.  Puerto  Madryn,  Puerto  Gallegos,  and  Puerto 
Deseado  are  important  ports  of  this  type,  whose  exports  consist 
mostly  of  wool.  These  ports  are  not  adapted  to  large  vessels.  To 
aid  in  their  development  the  Government  has  relieved  them  from 
customs  duties  until  recent  times. 

In  central  Argentina  the  Andean  rivers  lose  themselves  on  the  arid 
plains,  practically  no  waterways  existing  in  the  northern  part  of  the 
Territory  of  Pampa  Central  and  the  Province  of  Buenos  Aires.  These 
are  rich  sections,  and  railroad  development  has  increased  to  a  remark- 
able extent.  Many  of  these  big  railroads  are  responsible  for  the 
development  of  growing  harbors.  Such  a  group  of  ports  is  found 
about  JBahia  Blanca,  which  is  the  terminal  of  the  Great  Southern 
Railway,  with  excellent  facilities  for  docking  ships  and  handling 
grains.  Distant  only  a  few  miles  is  the  new  harbor  of  Port  White, 
with  its  electrically  operated  cranes  and  large  grain  elevators,  and 
Puerto  Mihtar,  the  naval  base,  where  ship  repairs  are  made. 

In  the  northern  Provinces  the  great  waterways  rising  in  the 
tropical  regions  imite  to  form  the  River  Plate  and  offer  profitable 
arteries  for  trade.  This  huge  estuary,  25  miles  across  at  the  junction 
of  the  Parana  and  Uruguay,  widens  out  to  217  miles  at  its  meeting 
with  the  ocean.  Montevideo  and  Buenos  Aires,  180  miles  apart, 
have  developed  as  a  result  of  favorable  conditions.  Buenos  Aires, 
with  a  trade  of  approximately  $500,000,000  (United  States  currency) 
in  1913,  handles  an  average  of  60  per  cent  of  the  foreign  trade  of  the 
Republic.  In  the  value  of  its  forei^  business  it  is  the  seventh  world 
port  of  importance,  and  in  the  Americas  is  surpassed  only  by  New  York 
City.  The  growth  has  developed  in  spite  of  some  adverse  conditions. 
The  tides  and  storms  affect  harbor  shipping.  A  sand  bar,  formed 
across  the  mouth  at  the  point  where  the  waters  of  the  ocean  force 
the  river  to  slow  down,  must  be  kept  open  by  a  dredged  channel. 
The  water  is  also  shallow  in  the  immediate  vicinity  of  Buenos  Aires. 

72 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR.  73 

Congestion  has  developed,  due  to  the  concentration  of  the  foreign 
trade  in  the  one  port.  To  reheve  this,  La  Plata,  30  miles  distant, 
has  come  into  existence  and  to-day  is  the  third  port  in  Argentina'  in 
the  value  of  foreign  business  transacted. 

The  Parana  waterway  is  navigable  for  200  miles  for  vessels  of 
6,000  tons.  The  greatest  port  is  Rosario,  186  miles  up  the  river. 
Ocean-going  vesseE  enter  Eosario,  and  several  lines  from  New  York 
advertise  regular  direct  sailings  to  this  port.  Forest  and  agricul- 
tural products  are  exported.  Other  Parana  ports  of  importance  are 
Santa  Fe,  San  Nicolas,  and  Zarate. 

RAILWAYS. 

Argentina  is  one  of  the  many  regions  where  nature  offers  cer- 
tain conditions  conducive  to  railroad  growth,  at  the  same  time 
presenting  other  factors  which  tend  to  hinder  progress.  The  actual 
development  depends  upon  man's  ability  to  utilize  the  natiu-al 
advantages  and  overcome  the  drawbacks. 

The  vast  stretches  of  level  land,  especially  in  central  Argentina, 
the  absence  of  spring  freshets  with  attendant  washouts,  and  the 
existence  of  bulky  freight  in  the  form  of  grains  and  live  stock  seem 
to  form  a  combination  especially  conducive  to  rapid  railroad  exten- 
sion. The  moving  of  these  heavy  crops  comes  at  one  time  in  the 
year,  because  producers  have  provided  no  means  of  storing  and 
conserving  the  resources  at  the  place  of  production.  The  raih-oads 
are,  therefore,  severely  taxed  during  short  periods,  and  the  prob- 
lem is  the  maintenance  of  sufficient  rolling  stock  for  this  Dusy 
season.  Numerous  complaints  are  voiced  both  by  the  Argentine 
shipper  and  the  British-owned  carrier.  This  phase  of  the  railway 
problem  is  much  more  acute  than  in  the  United  States  wheat  belt, 
because  the  people  are  scattered  and  their  standard  of  living  calb 
for  fewer  wants,  so  that  the  inbound  hauls  bring  relatively  small' 
returns.  Passenger  traffic  is  also  relatively  unimportant.  Another 
seeming  drawback  to  railway  development  is  the  necessity  of  pur- 
chasing coal  and  railway  materials  abroad. 

A  study  of  the  following  table,  listing  railroads  open  for  traffic, 
shows  that  the  Argentine  railroads  are  controlled  by  the  Govern- 
ment and  by  private  companies.  The  larger  railroads  are  held 
under  private  ownership.  A  brief  outline  of  railway  development  is 
necessary  in  a  study  of  present  conditions. 

During  the  decade  following  1850  a  short  line  was  constructed 
from  Buenos  Aires,  the  material  employed  being  second-hand; 
the  rolling  stock  required  a  5  foot  6  inch  gauge.  This  explains  in 
part  the  diversity  in  the  gauge  among  the  rauroads.  The  narrow 
gauge  (2  feet  6  inches)  is  employed  in  the  remote  regions  for  hauling 
sugar  cane,  forest  products,  etc.  These  various  widths  cause  con- 
fusion, because  the  rolling  stock  of  the  different  railways  is  not  inter- 
changeable. Great  inconvenience  has  been  caused  in  the  Cordoba- 
Rosario-Buenos  Aires  districts,  and  steps  have  been  taken  to  stand- 
ardize the  gauge. 


74  ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 

Railways  op  Argentina  Open  for  Traffic.^ 


Owner- 
ship. 

Gauge. 

Open  to  traflic. 

Railways. 

January, 
1911. 

January, 
1912. 

January, 
1913. 

PRINCIPAL  BAIL-WAYS. 

Central  Norte 

State-... 
.do  . . . 

Meter 

Kilo- 
meters. 
2,136 
1,355 

Kilo- 
meters. 
2,290 
1,902 
480 
1,752 
1,166 
1,307 

291 

291 

86 

86 

180 

56 

269 

1,091 

1,073 

632 

797 

5,449 

2,594 

2,414 

1,195 

1,450 
4,722 

23 
34 

9 
30 
15 
20 

6 
21 

45 
59 
32 
114 
44 
28 

Kilo- 
meters. 
2,565 

Argentine  del  Norte 

.do 

1,915 

Chaco  railways 

.do  . 

do 

556 

Cie.  Fr.  de  la  Province  de  Santa  Fe 

do 

1,752 

964 

1,289 

291 
291 

86 
86 
180 

1,709 

Cie.  Gle.  de  la  Province  de  Buenos  Aires 

Cordoba  Central  Railway 

do 

do 

1,267 
1,348 

Cordoba  Central  Railway,  Buenos  Aires  Exten- 
sion  

do 

298 

Cordoba  and  Rosario  Railway 

do 

289 

Rafaela  Steam  Tramway  Co 

.do  

86 

Central  Railway  of  Chubut . 

do 

86 

Transandine  Railway  (B.  A.  &  P.  Ry.) 

do 

185 

State.... 

Standard 

131 

Buenos  Aires  Central 

do 

269 

1,029 

911 

290 

797 

4,978 

2,349 

2,391 

1,161 

1,396 
4,280 

23 
34 

9 
30 
15 
20 

5 
21 
45 
59 
32 
114 
44 
28 

269 

Entre  Rios  Railway 

do 

1,175 

Argentine  North  Eastern 

do 

1,074 
740 

Patagonian  railways 

State.... 

6ft.  6in.  (broad) 
do    .... 

Rosario  Puerto  Belgrano 

797 

B.  A.  Great  Southern  ..                      

do 

5,608 
2,669 

B.  A.  and  Western  Railway 

do 

B.  A.  and  Pacific  Railway..              

do 

2,491 

B.  A.  and  Pacific  Railway  (B.  B.  N.  W.  Ry.). . 
B.  A.  and  Pacific  Railway  (Argentine  Great 
Western  Ry.) 

do 

do 

1,321 

1,530 
4,751 

23 

Central  Argentine  Railway 

do 

SECONDARY  RAILWAYS. 

Ferrocarril  de  la  Plata . . 

Standard 

Meter 

CnloniaOcampn. 

34 

Vias  de  Cataiina  (Catalina  Warehouses  &  Mole 
Co ) 

Broad    . 

9 

F.  C.  de  Reslstencia 

75  cm 

30 

Tranvia  E16ctricade  Quilmes 

Standard 

3  ft.  6  in    . 

15 

Florencia  4  Piracua  (f orestal)  . 

20 

Vias  del  Puerto  de  Buenos  Aires  (Buenos  Aires 
Port  Rys.) 

State.... 
.do 

Broad    . 

5 

Via.'? del  Puerto Militar .., 

.do 

21 

Po  Tirol  Col.  Lucinda     . . 

Private.. 
...do 

2  ft.- 

45 

Colonia."?  T>as  Palrnas  , 

...  .do 

59 

.do  . . . 

2ft. 6in 

32 

Piraguacito  Guillermina  (forestal) . . 

.do  . 

75  nm 

114 

Resistencia  Col.  Dufaur  (forestal) 

Chaco  Norte  Branch  .                     

...do.... 
•do  ... 

do 

44 

Meter 

28 

Total  State  railways            

3,780 

24,503 

25 

454 

5,360 

26,215 

25 

454 

5,907 

Total  companies 

26,953 

Secondary  railways:  State  railways 

25 

Sponndary  railways:  companies ....,.,... 

454 

Grand  total 

28,762 

32,035 

33,319 

» Source:  The  South  American  Yearbook,  1915,  p.  83.    See  Commerce  Reports,  Apr.  18, 1919,  p.  419. 

With  one  exception,  the  railways  with  the  largest  mileage  are 
privately  controlled.     Halsey  ^  estimates  as  follows: 

The  value  of  the  privately  owned  railways  is  estimated  at  1,219,846,313  gold  pesos, 
of  which  amount  some  1,(X)0,000,000  pesos  consists  of  British  investments.  The  fol- 
lowing table  lists  the  privately  owned  railways,  classified  by  nationality  of  ownership, 
and  gives  the  capitalization  of  each  company.  The  figures  are  quoted  in  Argentine 
gold  (1  gold  peso=$0.9648)  and  are  those  given  in  the  ofl&cial  1917  reports  of  the  com- 
panies. 
English:  Gold  pesos. 

Central  Argentine 286, 097,  200 

Buenos  Aires  Great  Southern 265,  777, 336 

Buenos  Aires  Pacific 260, 877, 735 

1  Commerce  Reports,  Apr.  18, 1919. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


75 


English— Continued.  Gold  pesos. 

Buenos  Aires  Western 144,  716, 319 

Cordoba  Central 101, 653,  645 

Entre  Rios 40,  505,  538 

Argentine  North  Eastern 31,  399,  716 

Central  of  Chubut 1,  700,  322 

French: 

Province  of  Santa  Fe 52, 902, 878 

General  Ry.  of  Province  of  Buenos  Aires 45, 335, 932 

Rosario  to  Puerto  Belgrano 30, 575, 937 

Argentine : 

Buenos  Aires  Central 16, 893, 700 

The  prime  purpose  of  the  railway  system  is  to  carry  domestic 
products  to  the  exporting  points  and  to  distribute  the  imported 
goods  throughout  the  Republic.  Buenos  Aires  controls  nearly  85 
per  cent  of  the  imports  and  over  60  per  cent  of  the  exports ;  therefore 
the  biggest  railroads  extend  from  tnat  center.  Rosario  and  Bahia 
Blanca  are  secondary  points  of  radiation.^ 

The  Buenos  Aires  Great  Southern,  British  owned  and  operating 
3,792  miles,  extends  to  the  south  and  southwest  of  Buenos  Aires 
through  the  Province  of  the  same  name.  It  controls  special  facilities 
for  wheat  handling  at  the  export  points  in  the  vicinity  of  Bahia 
Blanca.  The  Buenos  Aires  &  Pacific  Railway  has  been  one  of  the 
most  adventurous  roads  in  the  country,  branching  out  into  the  pas- 
toral land  west  of  the  Province  of  Buenos  Aires.  By  a  series  of  ab- 
sorptions it  has  acquired  control  of  the  transcontinental  line  running 
westward  from  Buenos  Aires  to  the  Chilean  border. 

The  Central  Argentine  Railway  serves  the  northern  and  central 
Provinces,  including  the  cities  of  Buenos  Aires,  Rosario,  Cordoba, 
Santa  Fe,  Tucuman,  etc.  It  carries  the  products  of  rich  cereal  and 
pastoral  sections. 

The  Buenos  Aires  Western  Railway  is  the  fourth  in  importance. 
It  extends  into  the  rich  resources  of  Pampa  and  San  Luis  and  hauls 
great  quantities  of  freight. 

Other  railroads  of  substantial  mileage  are  the  Cordoba  Central 
(1,205  miles),  Entre  Rios  (831  miles),  Argentine  North  Eastern 
(752  miles),  and  the  Government-owned  road.  Central  Norte  (3,046 
miles). 

Argentina  not  only  has  the  largest  and  best-managed  system  in 
Latin  America  but  when  compared  with  those  in  other  countries  it 
shows  strength. 

World's  Railroad  Mileage.* 


Countries. 

Mileage. 

Countries. 

MUeage. 

United  States  

246,650 
38,493 
37,960 
32,839 
31,219 

Austria-Hunearv 

27,856 
25,400 
23,399 

Germany 

Canada 

Russia  in  Europe 

Great  Britain 

British  India 

Argentina 

22,160 

France 

1  Source:  Statistics  of  the  Director  General  of  Commerce  and  Industnr  of  Argentina,  **  Ai^entine    Inter- 
national Trade,"  1916,  p.  47.     Department  of  Agriculture  Printing  Ofnce,  Buenos  Aires. 

Of  these  22,160  miles  of  railroad,  which  have  not  materially  in- 
creased during  the  war,  the  Government  controls  3,813  miles,  or 
17.2  per  cent.     The  British  manage  about  14,000  miles,  or  65  per 

1  See  map,  p.  8. 


76  ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

cent,  and  the  money  invested  approximates  $1,000,000,000.  The 
French  are  the  next  heaviest  investors.  They  have  built  and  now 
control  three  railroads  in  the  northern  Provinces,  viz,  the  Province 
of  Santa  Fe  (1,188  miles),  the  General  Buenos  Aires  (790  miles), 
and  the  Rosario  &  Puerto  Belgrano  (493  miles).  The  capital  invested 
amounted  in  1917  to  $125,000,000.  Argentine  capital  is  interested 
in  the  Buenos  Aires  Central. 

The  Republic  has  built  and  controls  several  lines.  This  policy  is 
based  on  the  fact  that  certain  regions,  rich  in  natural  resources, 
are  too  inaccessible  for  the  private  companies  to  venture  the  heavy 
initial  expenditures.  Most  of  these  roads  are  in  the  far  north,  where 
people  are  few  but  resources  abundant.  The  Central  Norte  (3,046 
miles),  the  largest  State-owned  railway,  showed  a  deficit  each  year 
before  the  war.  The  Government  plans  to  open  up  the  Patagonian 
country  in  the  same  manner. 

RELATION    OF   GOVERNMENT  TO    RAILWAY   EXPANSION. 

As  in  most  undeveloped  countries,  the  Government  in  the  early 
days  gave  all  sorts  of  guaranties  to  those  who  were  interested  in 
railway  development.  Land  on  each  side  of  the  right  of  way  was 
offered  so  that  profits  might  be  later  made  for  the  companies  by  its 
sale.  Frequently  the  Republic  guaranteed  a  fixed  per  cent  dividend 
on  the  capital  invested;  ' '  the  companies  carried  guaranties  of  interest 
which  were  as  high  as  7  per  cent.  In  1895  the  guaranties  were 
relinquished  by  mutual  consent  and  4  per  cent  rescission  bonds 
issued  to  the  railways  in  payment  thereof.  Freedom  from  customs 
duties  and  taxes  in  general  was  still  granted."^  In  1907  the  Mitre 
Law  was  passed  (the  terms  of  which  were  not  compulsory  but  were 
volimtarily  accepted  by  most  of  the  privately  owned  lines)  defining 
the  liabilities  and  privileges  of  the  companies  and  exempting  them 
from  customs  duties  on  materials  used  and  from  all  State,  provincial, 
and  municipal  taxation.  Three  per  cent  of  their  net  profits  must  go. 
to  the  improvement  of  roads  and  bridges  in  their  territories.  This 
law  did  much  to  stabilize  railroad  management.  The  Entre  Rios 
still  operates  under  the  terms  of  its  original  concession. 

In  the  early  days,  so  eager  was  the  desire  for  growth  that  pledges 
were  given  by  the  Government  which  later  could  not  be  redeemed. 
To-day  the  Republic  grants  no  special  privileges.  If  a  railroad  is 
needed  in  a  remote  region  and  the  initial  expense  is  heavy,  the  State 
undertakes  the  work,  hoping  eventually  to  repay  the  loss  by  the 
sale  of  adjacent  land  at  enhanced  values  and  knowing  that  its  action 
will  benefit  the  nation  as  a  whole. 

The  Government  even  goes  so  far  as  to  strive  to  have  new  roads 
constructed,  either  parallel  or  at  right  angles  to  the  established 
lines,  so  that  competition  may  start  and  less  profit  accrue  to  foreign 
investors. 

The  following  is  quoted  from  Commerce  Reports,  April  18,  1919: 

The  pension  law  of  1913  provides  that  3  per  cent  be  deducted  from  the  monthly 
salaries  of  employees  and  that  a  corresponding  amount  be  paid  to  the  pension  fund 
by  the  companies,  subject  to  certain  exceptions — for  instance,  when  the  companies' 
profits  fall  below  certain  amounts.  A  new  law  was  projected  in  1915,  but  was  satis- 
factory neither  to  the  employers  nor  to  the  employees,  and  has  never  been  passed. 

1  Commerce  Reports,  Apr.  18, 1919. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


77 


The  railway  companies  have  declared  themselves  willing  to  pay  as  much  as  8  per 
cent  of  their  wages  sheet  provided  the  workmen  pay  5  per  cent  of  their  wages,  the 
extra  cost  to  the  companies  to  be  met  by  increased  rates.  The  workmen  are  holding 
out  for  an  increase  in  the  amounts  of  the  pensions  to  be  received  and  for  a  reduction 
in  the  term  of  service  necessary  to  procure  a  pension. 

IMPORTS   OF   RAILWAY   SUPPLIES. 

The  following  is  also  quoted  from  Commerce  Reports,  April  18, 
1919: 

PRE-WAR  IMPORTS. 

The  administrative  offices  of  the  large  English  companies  are,  without  exception, 
situated  in  Buenos  Aires,  but  the  executive  officers  are  English  and  prefer  to  make 
their  purchases  in  England  when  possible.  This  fact  explains  the  predominant  place 
occupied  by  England  among  the  countries  sending  railway  equipment  to  Argentina 
during  the  five-year  period  (1909-1913)  immediately  preceding  the  war. 

The  following  table  gives  the  total  amount  of  railway  supplies  imported  from  1909 
to  1913  by  countries  of  origin.  Since  the  tariff  valuation  is  a  fixed  amount  for  each 
article,  increase  or  decrease  in  these  figures  represents  a  difference  in  the  amount  of 
imports  and  not  price  fluctuations. 


Countries  of  orifnn. 

Locomo- 
tives. 

Passenger 
cars. 

Freight 
cars. 

Rails,  steel. 

Rails,  used. 

Other 
material. 

United  Kingdom       

Number. 

612 
60 

525 
69 
15 
16 

Number. 
372 
160 
26 
27 
6 
8 

Number. 
10,957 
2,016 
1,576 
7,230 
'688 
72 

Metric  tons. 
426, 124 
198, 830 
289,889 
80,246 
40,685 
37,903 

Metric  tons. 
161 

Gold  pesos. 

26,924,577 

1,075,661 

2, 657, 117 

2,685,042 

754  469 

United  States 

Germany         

1,340 

Beigimn 

France 

38 
41 

All  other  countries 

236*609 

Total 

1,287 

599 

22,439 

1,073,677 

1,580 

34,333,475 

STEADY   DECREASE    IN   IMPORTS   DURING    WAR. 

No  detailed  statistics  for  1916,  1917,  or  1918  are  now  available,  but  the  following 
table,  compiled  from  the  official  Argentine  statistics  for  1913-1917,  demonstrates  the 
continued  decrease  in  total  imports  during  successive  war  years: 


Year. 

Locomo- 
tives. 

Passenger 
cars. 

Freight 
cars. 

Rails,  steel. 

RaUs,used. 

other 
material. 

1913 

Number. 

234 

189 

29 

30 

2 

Number. 
98 
69 
28 

I 

Number. 

5,370 

68 

Metric  tons. 

156, 592 

84,936 

13,391 

1,535 

640 

Metric  tons. 
29 
13 
21 
25 
14 

Gold  pesos. 
5,  (Ml,  415 
4,116,622 
1,690,786 
1,261,908 
822,065 

1914 

1915 

1916 

24" 

28 

1917 

Total 

484 

206 

5,490 

257,094 

102 

12,932,796 

PRESENT  CONDITIONS. 


Since  imports,  not  only  of  rolling  stock  but  of  miscellaneous  supplies  of  all  kinds, 
including  raw  materials,  have  been  so  greatly  restricted  for  the  past  four  years,  the 
equipment  of  all  the  roads  has  become  very  materially  depleted.  Tlie  Patagonian 
State  railways  are  reported  to  be  especially  hampered  by  lack  of  equipment.  The 
Entre  Rios,  according  to  the  latest  company  report,  is  in  the  market  for  one  or  more 
new  train  ferries.  The  annual  purchases  of  the  Government  railways  are  said  to  amount 
to  about  5,000,000  paper  pesos.  All  the  companies  report  that,  in  view  of  high  prices, 
the  difficulty  of  obtaining  supplies,  and  unsettled  conditions  in  Argentina,  pur- 
chases have  been  reduced  to  the  minimum  amount  consistent  with  the  maintenance 
of  satisfactory  service. 


78  ECOITOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

PLAN    OF  ARGENTINE   RAILWAYS. 

The  railways  conform  in  general  to  the  following  plan  of  location: 

I.  Lines  radiating  from  Buenos  Aires: 

(a)  Northeast,  the  three  links  over  which  the  international  trains  run  from 

Buenos  Aires  to  Asuncion,  Paraguay. 
(6)  North  through  Rosario,  Corrientes,  Tucuman,  and  Jujuy  to  La  Quiaca, 
on  the  Bolivian  border,  and  Embarcacion,  near  the  Bolivian  border. 

(c)  Northwest  to  Cordoba  and  Tucuman. 

(d)  West  through  Mendoza  to  the  Chilean  border.    Connections  are  made  at 

Mendoza  for  Santiago  and  Valparaiso,  Chile. 

(e)  Southwest  to  Toay. 

If)  South  to  La  Plata,  Mar  del  Plata,  and  Bahia  Blanca. 
II.  Patagonian  railways. 

The  railways  of  the  Pampas  transport  large  quantities  of  grain  and  live  stock. 
Oranges  and  semitropical  fruits  form  an  important  part  of  the  freight  brought  down  from 
the  northeast.  Sugar  is  a  leading  item  in  the  export  freight  of  the  Tucuman  district  and 
grapes  and  wine  of  the  Mendoza  section.  Sheep  and  wool  are  the  principal  products 
of  northern  Patagonia  and  petroleum  of  the  Comodoro  Rivadavia  region.  '  Quebracho 
and  firewood  of  all  kinds  have  formed  profitable  and  important  parts  of  the  local  and 
through  freight  handled  since  the  war  by  the  lines  penetrating  the  northern  Provinces. 

THE   RAILROADS   DURING    THE    WAR. 

Railroad  mileage  remained  practically  constant  during  the  last 
years  of  the  war.  In  1913  there  were  20,805  miles;  in  1914,  21,398; 
and  in  1918,  22,160.  The  increase  was  caused  by  small  extensions  to 
the  present  systems.  During  the  first  years  of  the  war  the  decreased 
exports  resulted  in  the  reduction  of  revenues.  Then  came  the  ina- 
bility to  import  railway  materials  and  coal.  In  December,  1918,  the 
Argentine  Southern  Railway  reported  an  increased  expenditure  for 
coal  in  1917  of  $500,000.  In  order  that  the  railroads  might  survive, 
the  following  increases  were  allowed  in  the  freight  rates,  viz :  October 
1,  1915,  10  per  cent  increase;  November  20, 1917,  22  per  cent  increase ; 
May  1,  1918,  10  per  cent  increase. 

The  rates  were  47.6  per  cent  higher  in  1918  than  early  in  1915. 
One  of  the  strongest  factors  causing  this  increase  was  the  growing 
demands  on  the  part  of  labor.  A  general  strike  was  declared  in  Septem- 
ber, 1917,  whicn  extended  beyond  the  railroad  men  to  the  public 
utilities  and  the  shipping  industries.  The  strikes  varied  in  intensity, 
but  the  railroads  with  the  increased  freight  rates  were  able  to  offer 
better  wages  and  granted  other  concessions,  such  as  the  48-hour 
week,  promotion  according  to  merit,  and  no  dismissal  without  trial. 
These  strikes  were  the  forerunners  of  those  which  are  tying  up  har- 
bor traffic  in  1919.^ 

Following  are  three  further  statements  quoted  from  Commerce 
Reports,  April  18,  1914,  which  include  statistics  regarding  railroad 
development,  capital  invested,  and  railway  stocks,  quoted  from  three 
sources.  They  snow  the  decrease  in  the  business,  receipts  and  capital 
invested,  and  the  depreciation  in  the  selling  price  of  railway  stocks 
during  the  war.  With  the  return  of  normal  conditions  in  shipping 
and  in  world  trade  railroad  development  will  undoubtedly  again 
make  rapid  progress. 

1  Special  reference:  Investments  in  Latin  America— Special  Agent  Series  No.  169  (1918),  Bureau  of  Foreign 
and  Domestic  Commerce. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


79 


FINANCIAL   OUTLOOK. 


The  following  quotations  of  railway  stocks  which  are  listed  on  the  London  Stock 
Exchange  represent  the  high  and  low  prices  f of  1913  and  the  opening  and  cloeing  prices 
for  191S.  They  show  the  very  real  depreciation  in  the  selling  price  of  these  stocks  since 
the  war,  but  they  show  also  that  during  the  last  year  the  movement  has  been  appre- 
ciably upward.  With  a  single  exception,  the  closing  price  for  1918  is  higher  than  the 
opening  price. 


Name  of  company. 


1913 

1918 

High. 

Low. 

Opening. 

130 

109 

72i 

128 

109 

71 

112 

100 

59 

92 

64 

39 

54 

39 

llj 

78 

54 

221 

Closing. 


Buenos  Aires  Great  Southern,  ord 

Buenos  Aires  Western,  ord 

Central  Argentine,  ord 

Buenos  Aires  Pacific,  ord 

Central  Cordoba,  ord , 

Entre  Rios,  ord 


72 

73i 

66 

58i 

17i 

41 


The  following  table  gives  the  amount  of  gross  revenue  for  the  years  1916-17  and 
1917-18,  the  percentage  consumed  in  working  expenses,  and  the  dividends  on  ordinary 
stock,  wherever  it  has  been  possible  to  obtain  these  details  from  published  company 
reports: 


Name  of  company. 

Gross  receipts. 

Per  cent  con- 
sumed in  work- 
ing expenses. 

Dividends. 

1916-17 

1917-18 

1916-17 

1917-18 

1916-17 

.  1917-18 

Central  Argentine 

£5,246,626 

5,734,141 

4,421,368 

2,504,939 

1,565,292 

636,526 

297, 752 

389, 100 

22,317,330 

£6,184,089 

5,838,441 

5,269,979 

2,858,639 

1,709,227 

847,797 

369,853 

460,000 

2  2,587,117 

68.71 

64.06 

65.98 

66.88 

73.77 

64.38 

54.73 

(0 

85.02 

73.94 
76.16 
65.80 
75.68 
75.16 
62.32 
55.05 
84.80 
82.77 

Per  cent. 

1 
4 

Per  ceru. 
2 

Great  Southern 

2 

Pacific 

Buenos  Aires  Western 

3 

2 

Cordoba  Central 

Entre  Rios 

Central  of  Buenos  Aires 

0) 

(0 

Argentine  Northeastern 

Rosario  Puerto  Belgrano 

0> 

6) 

1  Figures  not  given. 


2  Argentine  paper  pesos. 


The  State  railways  usually  show  an  annual  deficit,  but  in  1915  and  again  in 
1916  they  showed  a  slight  profit  on  the  capital  investment.  No  later  reports  are  now 
available.  A  recent  issue  of  the  Review  of  the  River  Plate  states  that  the  Minister  of 
Finance  has  been  authorized  to  transfer  the  sum  of  12,000,000  paper  pesos  to  the 
Administrator  of  State  Railways.  One-half  of  this  amount  is  to  be  utilized  in  canceling 
the  outstanding  liabilities  of  the  administration  and  the  remainder  in  the  acquisition 
of  materials  urgently  required  for  the  State  lines.  It  is  understood  that  the  transfer 
will  be  effected  at  the  rate  of  100,000  pesos  a  day. 

Capital  Invested  in  Railroads,  June  30,  1917.* 


Railroads. 


Dollars. 


Central  Argentine  (British) 

Buenos  Aires  Great  Southern  (British) 

Buenos  Aires  Western  (British) 

Buenos  Aires  and  Pacific  (British) 

Argentine  Great  Western  (British) 

Bahia  Blanca  and  North  Western  (British) 

Villa  Maria  and  Rufino  (British) 

Argentine  Transandine  (British) 

Province  of  Santa  Fe  (French) 

General  Railway  Company  of  the  Province  of  Buenos  Aires  (French). 

Cordoba  Central  (British) 

Buenos  Aires  Central  (Argentine) 

Rosario  to  Puerto  Belgrano  (French) 

Steam  Tramway  of  Rafaela  (Argentine) 

Entre  Rios  (British) 

Argentine  North  Eastern  (British) 

Buenos  Aires,  Ensenada  and  Southern  Coast  (British) 

Central  Railway  of  Chubut  (British) 


286,097,200 

248,227,900 

144,716,300 

119,548,500 

63,314,600 

50,809,800 

5,748,100 

11,751,600 

52,902,900 

45,207,000 

100,510,300 

16,893,700 

30,575,900 

470,600 

40,505,500 

31,399,700 

4,415,600 

1,700,300 


Total 1,254.795,500 


276,083,798 

239,539,924 

139,651,229 

115,364,302 

61,098,589 

49,031,457 

5,546,917 

11,340,294 

51,051,298 

43,624,755 

96,992,440 

16,302,420 

29,505,744 

454, 129 

39,0S7,807 

30,300,711 

4,261,054 

1,640,790 


1,210,877,658 


>  Source:  Ernesto  Tornquist  &  Cia.,  "Business  Conditions  in  Argentina, 
p.  19. 

124236°— 20 6 


Report  No.  142  (Aug.  31, 1918), 


80 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


Railway  Development  and  Effect  of  War.^ 
[United  States  currency.) 


Year. 


1880 
1890 
1900 
1910 
1911 
1912 
1913 
1914 
1915 
1916 
1917 


Length 
(miles). 


155 
1,663 
5,861 
10,292 
17,392 
19,619 
19,793 
20,805 
21,398 
22,037 
22,163 
22,172 


Capital  in- 
vested. 


$5,191,602 

60,  760, 729 

309,864,097 

522,620,476 

868,914,999 

1,046,639,000 

1,081,002,000 

1, 168, 108, 694 

1,193,437,716 

1,282,861,440 

1,286,683,840 

1,377,409,920 


Number  of 
passengers. 


747,684 
2,751,570 
10,069,606 
18,296,422 
59,014,600 
67,457,432 
73,212,084 
80,279,940 
81,745,535 
67,401,000 
64,829,000 
57,595,700 


Freight 

(metric 

tons). 


71,571 
772, 717 
5,420,782 
12,659,831 
33,606,626 
32,338,263 
38,869,804 
43,038,082 
35,378,830 
35,655,700 
36,630,600 
28, 792, 300 


Receipts. 


$543,424 
6,330,802 
25,137,326 
39,952,301 
107,058,457 
112,359,045 
125, 160, 672 
137,255,167 
114,595,120 
116,783,335 
121, 173, 892 
114,830,658 


Expenses. 


$423,597 
2,964,659 
16,969,992 
22,902,108 
63, 622, 090 
69,095,220 
78,500,905 
86,289,835 
77,657,593 
73,942,064 
78,555,729 
85,999,063 


1  Source:  Halsey,  "Investments  in  Latin  America,"  Special  Agents  Series  No.  169,  Bureau  of  Foreign  and 
Domestic  Commerce,  p.  46;  Argentine  International  Trade,  Director  General  of  Commerce  and  Industry, 
1916,  p.  46. 

AUTOMOBILES.^ 

Except  in  the  vicinity  of  the  larger  cities  there  are  no  highways  in 
the  North  American  meaning  of  the  term.  Over  the  level  stretches 
vehicles  may  follow  road  trails  in  clouds  of  dust  during  the  dry  season. 
After  heavy  rains  these  roads  are  practically  impassable,  and  the 
huge  grain  carts  go  lumbering  along  drawn  by  20  or  30  powerful 
animals. 

Before  1911  automobiles  were  imported  almost  exclusively  from 
Europe  for  use  by  the  wealthy  in  the  larger  cities.  These  were  heavy , 
expensive  cars.  During  the  war  North  American  demonstrators 
went  into  agricultural  and  pastoral  Argentina  and  convinced  the 
unbelievers  that  the  light  car  from  the  States  can  stand  the  wear 
and  tear  of  country  life.  Kecently  the  demand  has  been  so  heavy 
that  prosp)ective  buyers  had  to  register  for  future  deliveries.  Greatly 
increased  import  duties  (40  per  cent  increase)  may  retard  the  sales  of 
Fords,  Chevrolets,  Maxwells,  and  other  cars  of  light  weight  and  low 

?rice.  It  would  seem  as  if  a  demand  for  motor  trucks  would  develop, 
'hese  could  carry  the  food  supplies  to  cities  and  to  the  railway  sta- 
tions. The  prevailing  cheapness  of  dray  animals  and  the  expense 
of  gasoline  (40  cents  to  70  cents  a  gallon),  however,  are  holding  back 
the  sale  of  both  motor  trucks  and  farm  tractors. 

The  State  has  attempted  to  improve  the  roadways  by  prescribing 
that  3  per  cent  of  the  net  profits  of  the  railway  companies  shall  go 
toward  highway  improvement  and  bridge  building  in  the  neighbor- 
hood traversed.  During  1913  the  sum  realized  from  this  source  was 
approximately  $1,500,000,  and  970  miles  of  road  were  constructed  or 
repaired  and  27  bridges  built.  This  revenue  decreased  during  the 
war. 

The  prospect  of  marked  progress  in  transportation  facilities  with 
the  advent  of  the  automobile  is  not  in  sight,  principally  because 
Argentina  lacks  the  materials  for  construction  and  the  labor  for  the 
maintenance  of  an  effective  system  of  highways. 


1  Special  reference:  Argentine  Market  for  Motor  Vehicles,  Miscellaneous  Series  No.  162,  Bureau  of  Foreign 
and  Domestic  Commerce. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR. 


81 


SfflPPING  ENGAGED  IN  FOREIGN  TRADE. 

Argentina's  overseas  trade  is  carried  by  ships  flying  foreign  flags. 
Its  coast  trade  is  carried  largely  by  ships  flying  the  Argentine  flag. 
The  war  caused  a  reduction  to  one-third  of  the  tonnage  en- 
gaged in  overseas  trade,  and  reduced  the  proportion  flying  the 
British  flag  and  increased  the  tonnage  of  the  united  States  and  the 
northern  neutral  countries.  Tonnage  engaged  in  coast  trade  has 
also  decreased  steadily  since  the  beginning  of  the  war,  though  the 
reduction  has  not  been  so  great  as  in  the  case  of  overseas  tonnage. 


&nA-PM  No.  13 


I9l3 


niA 


iJli" 


/?l« 


I?  IT 


TONNA&E    EngLAGED    IN  AifGENTINE    Tl^AOr. 
Overseas  Coastwise 

? — f f f — f      ° — & — ^-  * 


5  TEAM 


Sa\l 


The  following  table  and  graph  No.  13  show  the  total  steam  and  sail 
tonnage  entering  and  departmg  from  Argentine  ports  in  coastwise 
and  overseas  trade  diuring  the  years  1913-1917: 

Total  Tonnage  Clearing  Through  Argentine  Ports,  1913-1917.* 


1913 

1914 

1915 

1916 

1917 

No. 

Net  tons. 

No. 

Net  tons. 

No. 

Net  tons. 

No. 

Net  tons. 

No. 

Net  tons. 

Overseas: 

Steam 

3,311 
206 

3,517 

9,026,214 
256,961 

2,412 
116 

6,704,948 
133,048 

2,328 
160 

5,849,144 
201, 193 

1,943 
259 

4,689,083 
370,588 

1,108 
'216 

2,966,518 

Sail      

294, 917 

Total 

9, 283, 175 

2,528 

6,837,996 

2,488 

6,050,337 

2,202 

5,059,671 

1,324 

3,261,435 

Coastwise: 

Steam 

10,031 
7,563 

6,473,649 
1,205,314 

9,283 
5,593 

6,406,201 
920,765 

8,226 
3,649 

6, 164, 178 
517,046 

7,314 
3,288 

5,850,554 
531,428 

6,453 
3,425 

4,743,552 
510, 398 

Sail 

Total    

17,594 

7,678,963 

14,876 

7,326,966 

11,875 

6,781,224 

10,602 

9,257 
3,547 

6,381,982 

10,539,637 
902,016 

9,878 

7,561 
3,641 

5, 253, 950 

Total: 

Steam 

13,342 
7,769 

15,499,863 
1,462,275 

11,695 
5,709 

13,  111,  149 
1,053,813 

10,554 
3,809 

12,013,322 

818, 239 

7,710,070 

Sail 

805, 315 

Total 

21,111 

16,962,138 

17, 404!  14. 164. 962!  14. 363 

12,831,561 

12,804 

11,441,653 

11,202 

8, 515, 385 

' 

Source:  El  Comercio  Exterior  Argentino,  Boletin  No.  176,  pp.  35,  36. 


82 


ECONOMIC  POSITION   OF  AKGENTINA  DURING  THE  WAR. 


The  war  has  caused  a  shifting  in  the  nationality  of  ships  engaged  in 
Argentina's  trade.  The  following  table  and  graph  No.  14  show  the 
increase  in  Norwegian  and  United  States  tonnage  and  the  decrease 
in  other  European  tonnage.  Great  Britain  still  holds  first  place, 
however,  among  countries  other  than  Latin  American.  It  should  be 
noted  that  the  shipping  flying  flags  of  Latin  American  countries  is 
approximately  the  tonnage  of  coastwise  trade.  As  a  rule,  Argentine 
and  Brazilian  ships  carry  the  coastwise  trade  and  European  and  other 
vessels  engage  in  overseas  trade.  The  study  of  the  table  on  page  81 
shows  that  the  vessels  engaged  in  coast  trade  are  smaller,  and  a 
slightly  larger  proportion  are  sailing  vessels. 

ctath  Up. .^.      Effect  ofthe  WAf?  m  NAnoNALin  of  Tonnage  \h 

/iRCENimA'S  Qj/Ei?SEAS  AND  CoASTWISE    TRADE 


l^lLH0W3    OF  'net  Tons 

Q . ?.      .  .    It 


f— f 


f- 


-1^ 


'f      ■      'P      '    ^? 


19151 


1917 


ONlTgQ     KIMODOM  |- 


>/-iti>W4»i  tvi«»r^  AtraCAJTl 


omen  latin  A^<^cr?>cAN 


Tonnage  Engaged  in  Argentine  Trade  in  1913  and  1917  in  Overseas  and  in 
Coastwise  Trade,  by  Nationality  of  Flag. 


Vessels  flying  the  flag  of— 

Net  tons. 

1913 

1917 

Europe: 

United  Kingdom    

5,731,278 
607,948 
556,925 
203, 247 
207,397 
183,365 

1,118,560 
472, 154 

1,355,883 

Italy " 

254,382 

France           ...                    .                                                            

239, 745 

Netherlands 

60,526 

Norway 

292,310 

Spain 

188,218 

Germany 

108,342 

Total  European 

9,080,874 

2,589,406 

United  States 

14,999 

447,887 

Latin  America: 

Brazil 

46,367 

47,036 

7,766,959 

5,939 

112,475 

Uruguay  . .          

367, 649 

Argentina 

4,937,045 
30, 424 

Total  Latin  American    . 

7,866,301 

5, 447, 593 

Japan .       

0) 

30,499 

TotaL.. 

16, 962, 138 

8, 515, 385 

3,845  net  tons  in  1912. 


ECONOMIC   POSITION   OF  ARGENTINA  DURING  THE   WAR.  83 

POSSIBILITIES  OF  SHIPBUILDING  OR  PURCHASE  OF  SHIPS. 

When  the  foreign  shipping  tonnage  became  so  decreased  that  the 
exportable  grains  lay  rotting  and  the  railways  feared  demoralization 
on  account  of  scarcity  of  fuel  and  the  inability  to  obtain  repair 
materials,  then  the  Republic  realized  the  disadvantages  of  complete 
dependence  upon  foreign  shipping. 

in  August,  1918,  the  President  of  Argentina  strongly  urged  that 
shipbuilding  be  fostered  by  concessions  of  land  sites,  by  exemption 
from  taxation,  and  by  other  forms  of  subsidies.  The  expense  of  the 
raw  materials  and  the  scarcity  of  skilled  labor,  however,  will 
make  the  cost  of  construction  prohibitive.  Probably  the  Repub- 
lic will  find  it  advisable  to  buy  ships  abroad  or  to  offer  inducements 
for  foreign  shipping  to  sail  under  Argentine  registry.  Argentina 
will  not,  however,  build  or  own  ships  to  carry  its  overseas  trade  to 
any  appreciable  extent,  for  the  same  reasons  that  its  industries  will 
not  develop  rapidly  in  the  near  future.  The  bulk  of  Argentine  cap- 
ital will  tend  to  be  invested  in  agriculture  and  stock  raising. 


Vra.  ARGENTINE  FOREIGN  TRADE. 
IMPORTANCE   OF  THE  FOREIGN  TRADE. 

An  appreciation  of  Argentina's  foreign  trade  will  be  gained  by  a 
comparison  with  that  of  other  nations. 

Nations  Leading  in  Value  op  Foreign  Trade,  1913.' 


Countries. 

Foreign  trade. 

Countries. 

Foreign  trade. 

1.  United  Kingdom 

$5,763,907,000 
4,966,665,000 
4,223,610,000 
2,969,067,000 
2,814,350,000 
1,691,775,000 
1,386,880,000 
1,385,644,000 

9.  Austria-Hungary 

$1,253,785,000 
1,185,345,000 

2.  Germany 

10.  Italy 

3.  United  States 

11,  Canfi-fla 

1,065,282,000 
2  873,387,000 

12.  Argentina 

5.  Netherlands.           

13.  Australia 

753,528,000 
721,416,000 

6.  Belgium 

U.  Hhina    ... 

7.  British  India 

15.  Japan 

678,222,000 

8.  Russia..    .                        .... 

1  Source:  Statistical  Abstract,  United  States.  1914. 

*  Corrected  or  "real  value  "  as  published  by  the  Argentine  Government  in  1917  is  $979,844,595,  or  1,  015,- 
383,000  gold  pesos  converted  to  United  States  currency  at  $0,965.  (See  note,  p.  6,  in  this  study.  See  also 
pp.  7-23  of  El  Comercio  Exterior  Argentino  en  1916  y  1917.) 

The  importance  of  this  trade  is  further  emphasized  when  compared 
with  that  of  other  South  American  countries. 

Foreign  Trade  op  South  American  Countries,  1913.* 


Countries. 

Foreign  trade. 

Countries. 

Foreign  trade. 

1  Argentina    .                 .... 

$873,387,000 

642,451,000 

264,927,000 

115,808,000 

74,100,000 

6.  Colombia. .            

$61,303,000 
57,909,000 

2.  Brazil 

7.  Bolivia 

3.  Chile                 

8.  Venezuela 

43,329,000 

4  Urueuav 

9.  Ecuador  . . 

24,371,000 
13,751,000 

5.  Peru 

10.  Paraguay 

'  Source-  Statistical  Abstract,  United  States,  1914. 

Argentina's  foreign  trade  is  the  dominating  factor  in  its  economic 
life.  Domestic  trade  and  consumption  are  relatively  small  in  propor- 
tion to  foreign  trade.  Argentina  is  dependent  upon  foreign  markets 
for  a  far  larger  proportion  of  the  production  oi  its  industries  than 
is  the  United  States.  Agricultural  products  have  constituted  about 
48  per  cent  of  Argentina's  exports  since  1898.^  Argentina's  export 
trade  has  been,  therefore,  largely  dependent  upon  good  crop  sea- 
sons. If  the  weather  fails,  the  Republic  has  less  to  exchange  for  the 
desired  imports  and  lacks  the  wherewithal  to  pay  the  interest  and 
dividends  due  foreign  capitalists.  On  the  other  hand,  Argentina  is 
dependent  on  foreign  countries  for  many  essential  imports.  Its 
coal  supply  is  almost  entirely  imported,  as  well  as  many  important 
manufactured  articles,  such  as  textiles,  automobiles,  and  all  kinds  of 
machinery  and  railroad  equipment.  Foreign  trade  plays  a  very 
large  part  in  the  economic  life  of  Argentina. 


84 


2  See  also  p.  88. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 


85 


CHANGES  IN  TRADE  DURING  THE  WAR. 

The  war  produced  marked  changes  in  Argentina's  trade.  Some 
of  these  were  temporary,  some  were  merely  the  acceleration  of  ten- 
dencies already  apparent,  while  others  were  changes  due  primarily  to 
the  war,  which  will  probably  persist  after  the  return  of  normal 
conditions. 

The  factors  brought  about  by  the  European  war  which  had  the 
most  marked  effect  upon  ArgentiQa's  trade  were:  (1)  Increased 
demand  for  certain  of  its  products,  such  as  meats  and  wheat;  (2) 
practical  cessation  of  trade  between  Argentina  and  the  Central 
Powers;  (3)  difficulties  in  obtaining  certain  imports  usually  pur- 
chased in  countries  then  engaged  in  the  war;  (4)  lack  of  shipping, 
which  prevented  its  obtaining  sufficient  supplies  of  coal  and  distrib- 
uting its  corn  crop ;  and  (o)  the  great  reduction  in  immigration, 
which  affected  the  labor  supply. 

The  effects  of  some  of  these  factors  upon  Argentina's  principal 
industries  and  its  trade  in  some  important  products  have  been  dis- 
cussed in  the  preceding  chapters.  The  effect  on  Argentina's  foreign 
trade  as  a  whole  will  now  be  traced  with  reference  to  changes  in  the 
direction  of  its  trade  and  changes  in  products  imported  and  exported. 

EFFECT  OF  THE  WAR  ON  VALUE  AND  QUANTITY  OF  TRADE. 

A  study  of  the  value  of  foreign  trade  over  a  period  of  years  is  mis- 
leading if  it  is  not  borne  in  mind  that  prices  may  change  from  year 
to  year  and  that  an  increase  in  the  value  of  exports  or  imports  does 
not  necessarily  mean  an  increase  in  the  quantity  of  products  in  trade. 
This  is  especially  true  of  the  war  period,  when  prices  advanced  in 
some  cases  so  much  that  values  of  trade  in  commodities  increased 
while  the  quantity  decreased. 

The  Argentine  Government  has  studied  this  condition  and  has 
published  mdex  numbers  on  trade  since  1910,  showing  real  changes 
m  quantity,  prices,  and  total  values.^  These  index  numbers  and  the 
figures  of  exports  and  imports,  real  and  nominal,  are  here  used  to 
show  the  changes  in  quantity  and  value  of  Argentina's  trade  during 
the  war. 


Eppeot  op  War  on  tke  Quantity  op  Imports  and  Exports.* 


(Explanation:  Prices  were  fixed  in  1906  in  the  "Tariff  of  Values."    The  following  values  were  based  on 
this  schedtUe  and  are,  therefore,  indicative  only  of  changes  in  the  quantities  of  goods  imported  and 
exported.) 

Imports  (tariff  values). 

Exports  (prices  based  on  those  of  1910). 

Years. 

Gold  pesos. 

United  States 
currency.3 

Quantity, 
index  No. 

Gold  pesos. 

United  States 
currency.3 

Quantity, 
index  No. 

1910 

351,770,656 
366,810,686 
384,853,469 
421,352„542 
271,817,900 
226,892,733 
217,409,322 
184,467,048 

339,458,682 
353,972,312 
371,383,598 
406,605,203 
262,304,274 
218,951,487 
209,799,996 
178,010,701 

100.0 
104.3 
109.4 
119.8 
77. 3 1 

389,071,360 
346,834,027 
512,625,466 
529,695,048 
397,915,223 

375,453,862 
334,694,836 
494,683,575 
520,805,721 
383,988,190 
482,417,566 
420,530,993 
301,400,434 

100.0 

1911 

89.2 

1912 

131.8 

1913 

136. 1. 

1914. 

102.2 

1915 

64.5 
61.8 
52.4 

499,914,576 
435,783,412 
312,332,056 

128.5 

1916 

112.0 

1917 

80.3 

1  El  Comercio  Exterior  Argentino,  Boletin  176,  pp.  7-23.    (See  note,  p.  6,  this  study.) 
s  Source:  El  Comercio  Exterior  Argentino,  Boletin  No.  176,  pp.  15-19. 
» Converted  at  $0,965-1  gold  peso. 


86 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 


In  the  preceding  table  the  year  1910  is  taken  as  the  standard  year, 
and  by  maintaining  the  prices  on  imports  fixed  in  1906  by  the  Gov- 
ernment, and  assuming  that  the  nature  of  these  imports  has  not 
materially  changed,  a  set  of  index  numbers  is  obtained  which  rep- 
resent the  changes  in  the  quantity  of  imports  and  exports. 

The  index  numbers  of  quantities  of  imports  are  plainly  indicative 
of  a  change.  The  war  markedly  reduced  the  quantity  of  a  growing 
import  trade. 

The  export  index  numbers  do  not  show  such  a  decided  tendency. 
The  low  indices  in  1911  and  1917  show  the  effects  of  poor  harvests. 

Effect  of  War  on  the  Value  of  Imports  and  Exports.^ 


Imports  (real  values). 

Exports  (real  prices). 

Years. 

Gold  pesos. 

U.  S.  currency.2 

Value,  in- 
dex No. 

Gold  pesos. 

U.  S.  currency.2 

Value,  in- 
dex No. 

1910.. 

379,352,515 
405,019,992 
446,863,002 
496,227,094 
322,529,964 
305,488,006 
366,130,571 
380,321,178 

366,075,177 
390,844,292 
431,222,797 
478,859,145 
311,241,415 
294,795,926 
353,316,001 
367,009,937 

100.0 
106.7 
117.7 
130.8 
85.1 
80.6 
96.6 
100.2 

389,071,360 
342,317,258 
501,667,369 
519,156,011 
403,131,517 
582,179,279 
572,999,522 
550,170,049 

375,453,862 
330,336,154 
484,109,011 
500,985,551 
389,021,914 
561,803,004 
552,944,539 
530,914,097 

100.0 

1911 

88.0 

1912 

128.9 

1913 

133.4 

1914.... 

103.6 

1915 

149.6 

1916 ■ 

147.3 

1917 

141.4 

1  Source:  El  Comercio  Exterior  Argentino,  Boletin  No.  176,  pp.  5-19. 
»  Converted  at  $0,965=1  gold  peso. 

The  foregoing  table,  giving  the  real  values  of  imports  and  exports 
expressed  by  index  numbers,  shows  a  different  condition  from  that 
presented  by  the  quantity  figures.  It  shows  that  while  the  limited 
shipping  caused  a  reduction  in  the  quantity  of  about  one-half,  yet 
the  value  of  imports  in  1917  was  about  the  same  as  in  1910.  The 
increased  cost  of  the  commodities  explains  the  situation. 


<Srahh,  hf<H5 

Million 
Dollars 

625 


-^OO 


-375 ^ 


ARGENTINA 
EFFECT  OF  WAR  ONTHE  gUANTITY  OF  FOREIGN  TRADE. 
— — — — —  Imports 


Exports 


■2jro 


JZ5- 


1910 


I^IZ 


1915 


«9' 


I9'5' 


1911 

ITOTE:     Import  values  are  given  on  the  basis  of  the  tariff 
values  of  1905.     Export  values  are  calculated  on  the  basis  of 
prices  In  1910.     Changes  indicated,  the"refore,   represent  ctonges 
In  quantity  of  e^qjorts  and  Imports. 


191b 


1917 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR. 


87 


The  two  graphs  (Nos.  15  and  16)  illustrate  the  foregoing  tables. 
By  comparing  the  two  the  increased  value  and  decreased  quantity 
in  imports  since  1915  can  be  seen,  together  with  the  rapid  drop  in 
the  quantity  of  exports  and  slight  drop  in  value  during  the  same 
period. 


Graph  Nci/6. 

MILLION 

-625 


—500 


ARGENTINA 

EFFECT  OFWARONTHE  VALUE  OF  FOREIGN  TRADE. 

IMPORTS. 

REAk    vAuues. 


EXPORTS. 


375 


250 


—125 


1910 


1911  1912.  1915  1914.  ,5,5. 

NATURE  OF  ARGENTINE  TRADE. 


1916 


1917 


The  products  entering  into  Argentina's  trade  have  been  discussed 
in  some  detail  in  the  early  parts  of  this  study.  In  the  chapters 
dealing  with  agricultural,  animal,  and  forest  products  Argentina's 
exports  have  been  discussed  and  the  effect  of  the  war  shown.  In  the 
chapter  dealing  with  manufactiu'ing  industries  the  dependence  of 
Argentina  upon  foreign  countries  For  certain  types  of  articles  is 
emphasized  and  the  effect  of  the  war  upon  the  type  of  commodities 
imported  is  indicated. 

GENERAL  TREND  OF  EXPORTS. 

The  following  table  and  graph  No.  17  and  graph  No.  2  on  page  13 
show  the  general  tendency  of  Argentina's  exports.  The  value  of 
agricultural  products  exceeds  that  of  animal  products  in  good  crop 
years,  and  both  show  a  tendency  to  increase  rapidly.  The  demand 
for  foods  to  complement  the  limited  production  m  the  United  States 
and  the  industrial  nations  of  Europe  will  increase.  Argentina's 
resources  are  great,  and  expansion  of  these  fields  of  enterprise  will 
continue. 


88  ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

CJAPH     No.    I/.,  A    -._  T~ 

—  /iRGENTlNA'5  Ixi 


Millions  oFaoLo    Pesos 
<f ^ /OQ 


POf?TS  BY  Thitee  Lai?(ie  Cu^^TtS 


t 


SSo 


Mmoirmi    Animal      J°^^ 


1898-1902       93,873,593  65,008.541  2  694  SM 

i903-1907     100,709,119  149,5I2,'279  I'^/^X 

*^?-l^?^.   168,310  759  217  4C5  137  IrJltls"? 

1913-1917    2S1,206,679  240,637,699  IsieiS.uI 


Exports  op  Meat  and  agricultural  and  Forest  Products  for  20  Years. 


Years. 


1900. 
1901. 
1902. 

1903. 
1904., 
1905.. 
1906. 
1907. 

1908. 
1909. 
19101 
1911. 
1912. 

1913. 
1914. 
1915. 
1916. 
1917. 


Animal 

productis 

(gold  pesos). 


87,381,625 
115,546,906 
71,253,886 
90,646,411 
104,539,139 

109,181,342 
105,364,624 
141,042,986 
124,136,439 
123,820,205 

115,118,457 
153,548,356 
177,252,895 
186, 170, 198 
209,463,892 

200,878,135 
198,694,743 
234,847,684 
295,578,360 
376,035,267 


Agricultural 

products 
(gold  pesos). 


42,692,922 
65,155,995 
77,426,356 
71,596,099 
68,171,332 

105,251,309 
150,328,529 
170,235,235 
157,654,692 
164,091,631 

241,677,164 
230,503,996 
196,916,103 
139,827,794 
278,400,627 

301,831,645 
191,293,774 
319,408,570 
246,122,234 
144,483,271 


Forestprod- 

ucts(gold 

pesos). 


2,283,061 
2,208,916 
3,508,915 
2,281,496 
3,649,208 

3,472,708 
4,765,608 
7,125,332 
5,921,859 
5,342,357 

6,347,234 
8,927,362 
10,564,525 
12,254,604 
8,983,112 

10,617,985 
9,238,745 
19,011,708 
22,462,080 
17,745,230 


Total  ex- 
ports 
(gold  pesos). 


133,829,458 
184,917,531 
154,600,412 
167,716,102 
179,486,727 

220,984,524 
264,157,525 
322,843,841 
292,253,829 
296,204,369 

366,005,341 
397,350,528 
389,071,360 
342,317,258 
501,667,369 

519,156,011 
403,131,517 
582,179,279 
572,999,522 
520,495,855 


Per  cent  of  total  exports. 


Meat 
products. 


65.3 
62.3 

46.1 
54.0 
58.2 


43.7 
42.5 
41.8 

31.4 

38.6 
45.5 
54.4 
41.7 

38.7 
49.3 
40.3 
51.6 
68.3 


Agricul- 
tural 
products. 


31.9 
35.2 
50.1 
42.7 
38.0 

47.6 
66.9 
52.7 
63.9 
65.4 

66.0 
68.0 
60.6 
40.8 
65.5 

58.1 
47.4 
54.8 
42.9 


Forest 
products, 


L7 
1.2 
2.2 
1.7 
2.0 

1.6 
1.8 
2.2 
2.0 
1.8 

1.7 
2.3 
2.7 
3.6 
1.8 

2.0 
2.3 
3.2 
3.9 
3.2 


All  other 
products 


1  After  the  year  1910  the  figures  in  gold  pesos  for  imports  and  exports  indicated  in  the  respective  columns 
refer  to  real  values.    Before  that  year  the  figures  difier  only  a  very  little  from  the  efiective  values. 


ECONOMIC   POSITION  OF  ARGENTINA  DURING  THE   WAR.  89 

EFFECT    OF   THE    WAR   ON   EXPORT   TRADE. 

Graphs  Nos.  5,  7,  and  9  on  pages  33,  38  and  43  indicate  the  nature 
of  Argentina's  trade  during  the  war.  ^  It  is  now  necessary  only  to 
sum  up  these  different  phases  of  trade  in  order  to  have  a  definite  idea 
of  the  changes  brought  about  by  the  war. 

Because  of  the  very  high  freight  rates  resulting  from  the  war  and 
the  fact  that  the  shipping  situation  was  so  largely  controlled  by  the 
allied  nations,  there  was  a  strong  tendency  toward  a  decrease  both  in 
exports  and  imports.  For  certain  products  which  Argentina  was 
able  to  furnish  the  warring  nations,  however,  shipping  was  provided, 
and  exports  of  these  commodities  increased ;  meats  and  wool  are  the 
chief  among  these.  Wheat  was  also  shipped  in  large  quantities, 
though  the  supply  was  greater  than  the  demand,  except  during  the 

gnA^H    No.  t^.  Effect  of  The  V/Af?    on  FxPof?TS 

BY     ThflE*        CLASSES 


GOLO   PESOS 

d  ro  loo  -iS-O  SiOO  2SO  3oo  3To  ^oo         ^so  ibo 

AcRicuLTuRA  L  Animal  Fof 


10.7  V/^^?//?????^????^^^?/^?^^^??^y^/A 


poor  crop  year  of  1917.  Animal  products,  including  meats,  wool, 
tides,  etc.,  increased  steadily  in  both  quantity  and  value,  while 
exports  of  agricultural  products  fluctuated,  decreasing  sharply  in 
1914  and  1917.  Preference  was  given  to  wheat  over  corn,  exports 
of  corn  being  reduced  to  an  almost  negligible  quantity  in  1917  and 
1918. 

A  few  products  of  manufacturing  industries  other  than  meat  prod- 
ucts increased,  due  to  the  stimulus  afforded  by  the  abnormally  high 
prices  obtainable  for  manufactured  products,  and,  in  the  case  of 
quebracho  extract  and  linseed  oil,  due  to  the  greater  facility  of  ship- 
ping concentrated  products  rather  than  bulky  raw  material.  Ex- 
ports of  flour,  butter,  cheese,  alcohol,  quebracho  extract,  woolen 
blankets,  and  some  leather  goods  were  stimulated  by  war  conditions. 
The  great  bulk  of  export  trade,  however,  continued  to  be  agricul- 
tural and  animal  products,  and  will  continue  so  for  many  years. 
Graph  No.  18  and  the  table  on  the  following  page  show  the  con- 
tinued dominance  of  these  exports  dm'ing  the  war. 


90 


ECONOMIC  POSITION  OF  ARGEl^TII^A  DURING  THE  WAR. 


The  following  table  shows  the  quantity  of  Argentina's  chief  ex- 
ports during  the  war  years : 

Exports  op  the  Principal  Products  op  Argentina,  1913-1917,  by  Quantities.* 


Domestic  products. 


1913 


1914 


1915 


1916 


1917 


Cattle head. . 

Horses do. . 

Sheep do. . 

Beef: 

Frozen metric  tons 

Refrigerated do. . 

Meat,  canned do. . 

Mutton,  frozen do. . 

Bristle do, . 

Skins: 

Goat do. . 

Kid do.. 

Sheep,  uncleaned do. . 

Hides: 

Cow,  pickled do. . 

Cow,  dried do. . 

Horse,  pickled do. . 

Horse,  dried do. . 

Wool,  unwashed do. . 

Butter do.. 

Tallow  and  fat,  melted do. . 

Bones do. . 

Oats do . . 

Barley do. . 

Linseed do. . 

Com do . . 

Hay do.. 

Wheat do.. 

Wheat  flour do.. 

Bran,  etc do.. 

Oilseed  cakes do.. 

Quebracho: 

Extract do.. 

Rollizos do. . 


224,911 

13,549 

103,997 

332,054 

34, 175 

12,574 

45,928 

2,264 


451 
19,026 

65,755 

29,219 

141 

1,042 

120,080 

3,784 

63,089 

30,716 

889,744 

40,742 

1,016,732 

4,806,951 

32,346 

2,812,149 

124,649 

274,058 

20,952 

79,684 
383,964 


115,556 
15,882 
52,085 

328,278 

40,690 

13,087 

58,688 

1,926 

1,448 

184 

12,962 

63,557 

14,508 

277 

1,117 

117,270 

3,482 

61,224 

32,479 

353,700 

25,091 

841,590 

3,542,280 

21,912 

980,525 

67,325 

230,934 

17,403 

80,153 
291,942 


103,207 
52, 163 
24, 168 

351,036 

11,703 

31,944 

35,035 

2,689 

2,360 

155 

20,225 

64,248 

25,579 

379 

2,169 

117,670 

4,623 

49,866 

16,519 

592,797 

74,899 

981, 192 

4,330,594 

18,439 

2,511,514 

116,049 

177,661 

20,963 

100,213 
209,679 


51,919 
28,314 
37,324 

411,547 

16,153 

44,569 

51,318 

2,880 

2,558 

655 

14,551 

77,841 

21,549 

675 

3,276 

117,657 

5.671 

48,685 

20,452 

804, 443 

67,580 

639,914 

2,873.910 

27,963 

2,294,876 

144, 290 

29, 035 

18,104 

97,574 
161,734 


71,355 
11,760 
69,924 

355,842 
38,995 

100,784 

39,820 

2,920 

1,762 

142 

11,325 

76, 182 

19,305 

1,026 

2,925 

127,433 

9,830 

67,810 

25.'118 

271,713 

12,321 

141,308 

893,939 

6,958 

935,828 

112,465 

19,872 

17,168 

90, 777 
133, 170 


1  Sources:  Anuario  de  Estadlstica,  1913,  pp.  424-465;  Anuario  del  Comercio  Exterior  de  la  Reptiblica 
Argentina,  1915,  pp.  358-392;  El  Comercio  Exterior  Argentino  en  1916  y  1917,  Boletin  No.  176,  pp.  415-417. 

Total  exports  by  groups  as  classified  in  the  official  statistics  are 
given  in  the  following  table : 


Exports  of  Argentina  by  Groups  op  Articles  for  1913-1917,^  Real  Values. 

[Gold  x>esos.] 


Groups  of  articles. 

1913 

1914 

1915 

1916 

1917 

Animal  products: 

Live  animals 

9,787,370 

167,011,867 

21,612,225 

2,466,673 

7,168,585 

170,952,289 

18,363,936 

2,209,933 

10,384,812 

195,045,556 

28,032,381 

1,384,935 

6,944,766 

244,878,849 

41,938,614 

1,816,131 

4,902,288 

Animal  products 

289, 160, 561 

Manufactured  animal  products 

Animal  residues _ , 

80,270,380 
1,702,038 

Total 

200,878,135 

198,694,743 

234,847,684 

295,578,360 

376,035,267 

Agricultural  products: 

Raw  materials 

288,520,030 
7,744,404 
5,567,211 

169,896,807 
16,201,097 
5,195,870 

294,963,812 

21,575,497 

2,869,261 

230,598,177 

14,429,685 

1,094,372 

127  237,558 

Vegetable  materials,  manufactured. 
Vegetable  residues 

15,613,807 
1,631,908 

Total 

301,831,645 

191,293,774 

319,408,570 

246,122,234 

144,483,271 

Forest  products 

10,617,985 

194,690 

1,367,443 

4,266,113 

9,238,745 

83,871 

889,997 

2,930,387 

19,011,708 

180,336 

1,406,966 

7,324,015 

22,452,080 
1,191,523 
1,496,815 
6,158,510 

17,745,230 

Mineral  products 

1,252,064 

Products  of  hunting  and  fi.shing 

other  products 

1,432,539 
9,221,678 

Grand  total 

519,156,011 

403,131,517 

582,179,279 

572,999,522 

550, 170, 049 

1  Source:  Intercambio  Econ6mico  de  la  Reptiblica  Argentina,  1910-1917,  pp.  277-403  (Form  p.  409);  El 
Comercio  Exterior  Argentino  en  1916  y  1917,  Boletin  No.  176. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR.  91 

Argentina  will  furnish  large  quantities  of  wheat,  linseed,  and  meat 
products  to  Europe  in  1919,  and  for  many  years  it  will  be  one  of 
the  chief  exporters  of  these  products. 

GENERAL  TREND  OF  IMPORTS. 

The  general  tendency  of  imports  prior  to  the  war  was  one  of  increase 
in  both  value  and  quantity.  There  are  a  great  many  commodities 
which  are  imported  in  large  quantities.  A  table  enumerating  these 
in  detail  would  be  a  very  long  one.  The  following  table,  quoted  from 
El  Comercio  Exterior  Argentino,^  shows  that  imports  of  com- 
modities for  use  in  agriculture  and  industry  were  slightly  greater  in 
value  than  those  for  consumption.  The  effect  of  the  war  was  to 
reverse  the  situation.  Undoubtedly,  with  the  return  of  normal 
conditions,  imports  of  machinery  for  industry,  agricultural  imple- 
ments, railway  equipment,  and  fuel  will  increase  rapidly.  As 
Argentina  tends  to  manufacture  more,  this  type  of  commodity  will 
tend  to  increase,  especially  coal  and  ^products  oi  iron  and  steel. 

Articles  are  classified  in  the  table  as  follows : 

Unproductive  articles,  or  necessities  of  life  and  luxuries,  include — 
Foodstuffs. 
Beverages 
Tobacco. 
Clothing. 
Certain  oils. 

Many  chemical  and  pharmaceutical  articles. 
The  greater  part  of  manufactures  of — 

Wood. 

Paper. 

Hides. 

Iron  and  other  metals. 

Glassware  and  pottery. 
Productive  articles  include — 

A.  Articles  transformed  and  presented,  or  articles  used  for  the  maintenance  of  in- 

dustry- 
Animals  for  breeding  purposes. 
Special  curative  materials. 
Textile  materials,  spun  or  raw. 
Industrial  oils. 
Machine  supplies. 
Dyes  and  paints. 
Iron  products  and  other  metals. 
Coal  and  petroleum. 
^  All  seeds. 

B .  Capitalization,  or  articles  used  for  the  expansion  or  establishment  of  industries — 

Materials  for  railroads,  etc.  * 

Electrical  materials. 

Agricultural  machines  and  implements. 

Sand,  pipes,  glass,  cement,  etc.,  for  construction. 

Machines  in  general. 

Iron  columns,  joists. 

Copper  and  brass  pipes,  etc. 

I  Boletin  176,  p.  422. 


92 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


Imports  Classified  as  Productive  or  Unproductive,  1908-1917. ^ 
[Gold  pesos,  nominal  values  indicating  changes  in  quantity.] 


Unpro- 
ductive. 

Productive. 

Total 
imports. 

Per  cent  represented  by 
each  classification. 

Years. 

Trans- 
formed 
or 
preserved. 

Capitaliza- 
tion. 

Total. 

produc- 
tive. 

Pro- 
duc- 
tive. 

Total. 

1908 

129,513,825 
146,967,332 
172,396,910 
176,782,703 
183,505,196 
197,207,526 
133,466,561 
99,598,603 
122,315,299 
115,122,863 

69,273,053 
68,510,649 
84,356,403 
90,308,147 
101,375,102 
115,240,412 
73,815,279 
93,617,376 
68,127,000 
51,965,486 

74,185,858 
87,278,114 
95,017,343 
99,719,836 
99,973,171 
108,904,604 
64,536,060 
33,676,376 
26,967,023 
17,378,699 

143,458,911 
155,788,763 
179,373,746 
190,027,983 
201,348,273 
224,145,016 
138,351,339 
127,294,130 
95,094,023 
69,344,185 

272,972,736 
302,756,095 
351,770,656 
366,810,686 
384,853,469 
421,352,542 
271,817,900 
226,892,733 
217,409,233 
184,467,048 

47.4 
48.5 
49.0 
48.2 
47.7 
46.8 
49.1 
43.9 
56.3 
62.4 

52.6 
61.5 
51.0 
51.8 
52.3 
53.2 
60.9 
56.1 
47.3 
37.6 

100 

1909           .  . 

100 

1910 

100 

1911 

100 

1912 

100 

1913 

100 

1914. 

100 

1915 

100 

1916. 

100 

1917 

100 

I  Source:  El  Comercio  Exterior  Argentine,  Boletin  176,  p.  422. 

The  following  three  tables  give  further  details  of  this  classification, 
which  is  similar  to  that  quoted  on  page  70  in  the  chapter  dealing 
with  the  development  of  manufacturing  industries. 

Imports  into  Argentina  of  Materials  for  the  Expansion  of  Industries  and 
Establishment  op  New  Enterprises.^ 

[In  gold  pesos;  nominal  values.2] 


Groups  of  articles. 

1913 

1914 

1915 

1916 

1917 

Locomotion:    Rails,  locomotives,  coaches 
and  cars,  railway  coaches  and  supphes 
street  car  and  other  transportation— total. 

Electricity:     Wire  and  cable,  conduction, 
dynamos,  meters,  accessories,  etc.— total. . 

Agriculture:     Machines  and  farm  imple- 
ments, wire  for  wire  work,  rods,  iron  for 

31,027,296 
8,985,731 

9,905,728 

42,159,440 
7,842,509 

8,983,900 

21,463,673 
6,340,175 

3,924,055 

20,847,791 
4,659,809 

7,300,557 

5,946,624 
3,363,783 

3,995,189 

14,780,599 
2,371,904 

3,218,655 

5,554,490 
2,904,089 

4,663,397 

11,113,653 
2,001,935 

729,459 

4,816,005 
2,218,921 

2,346,034 

5,839,116 
1,744,407 

Construction:  Sand,  pipes,  wood,  marble, 
pprnpnt  plass  other — total. 

Machines  in  general   

Iron  and  other  metals:    Columns,  joists, 
Tiino"?  prrnnpr  fttirl  brass — total. 

414,216 

Total 

108,904,604 

64,536,060 

33,676,754 

26,967,023 

17,378,699 

1  Source:  EI  Comercio  Exterior  Argentino,  Boletin  176,  p.  96. 

2  "Nominal  values"  are  used  because  they  are  indicative  of  changes  in  quantity. 


Imports  into  Argentina  op  Luxuries  for  1913- 

GoLD  Pesos. ^ 


-1917:    Nominal  Values  in 


Groups  of  articles. 


1913 


1^14 


1915 


1916 


1917 


Preserves,  canned,  bottled. 
Cigars  ana  tobacco. 


Wines,  fine,  liquors  and  aperitives 

Silks  and  fine  weaves,  ready-made  goods, 
casings,  men's  and  women's  hats 

Furs,  made-up,  ornaments,  silver  trim- 
mings hat  plumes,  etc 

Carpets,  tapestries,  and  furniture  trimmings . 

Essences  and  perfumes 

Furniture,  bronze,  wood  and  iron 

Fine  automobiles  and  other  conveyances . . . 

Gold  watches,  fine  jewels,  precious  stones, 
and  silverware 

Bronzes,  paintings,  and  artistic  marble 


2,995,668 
1,253,513 
7,940,671 

8,143,705 

547, 476 
1,131,303 
1,532,142 
2,911,393 
1,790,872 

3,071,796 
209,858 


1,763,776 
1,172,097 
4,206,420 

4,876,225 

268,909 

842, 987 

1, 134, 586 

1,548,940 

509,846 

1,088,202 
162,518 


1,430,082 

949,421 

3,884,788 

4,306,264 

110,662 
193, 513 
969,208 
676,665 
301, 118 

494,960 
79,615 


1,510,981 
1,095,328 
3,326,232 

6,215,547 

174,759 
288,495 
999, 457 
547,653 

752,277 

969,082 
43, 496 


1,052,866 
1,250,241 
2, 756, 859 

4,500,508 

170,697 
254,890 
824,713 
491,602 
1,100,931 

924,301 


Total 31,528,397     17,565,506     13,396,296     15,923,307 


13,366,696 


Source:  El  Comercio  Exterior  Argentino,  Boletin  176,  p. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR.  93 

Imports  into  Argentina  op  Coal,  Coke,  and  Petroleum,  in  Tons,  1913-1917.^ 


Articles. 

1913 

1914 

1915 

1916 

1917 

Coal                

4,046,278 
21,317 
192,546 

3,421,526 
14, 657 
161,731 

2,543,887 

11, 142 

303,  956 

1,884,781 

10,496 

303,235 

707,712 

Coke                             

3,904 

3,088,383 

Petroleuin                                            .  ..... 

Total  

4,260,141 

3,597,985 

2,858,985 

2,198,512 

1,019,999 

1  S(Jurce:  El  Comercio  Exterior  Argentino,  Boletin  176,  p.  97. 
IMPORTS  DURING  THE  WAR. 

Argentina  suffered  a  great  decrease  of  imports  during  the  war. 
Its  industries  and  railroads  were  handicapped  by  a  lack  of  fuel, 
machinery,  and  many  essential  materials ;  its  population  was  depriv- 
ed of  a  large  quantity  of  luxuries  of  many  kinds  imported  in  large 
quantities  before  the  war;  and  imports  of  articles  of  food  and 
clothing  were  greatly  reduced.  The  return  of  normal  conditions 
will  bring  renewed  competition  between  the  industrial  nations  for 
the  Argentine  markets  for  manufactured  goods,  coal,  and  machinery, 
and  other  imports  of  the  Republic  will  increase  rapidly  in  the  near 
future. 

The  preceding  tables  show  the  decrease  in  the  quantity  of  imports 
by  certain  classes.  The  following  table  gives  real  values  of  all  im- 
ports grouped  as  in  the  regular  official  statistics: 

Imports  into  Argentina  by  Groups  of  Articles  for  1913-1917:  Real  Values.^ 

[Gold  pesos.] 


Groups  of  articles. 

1913 

1914 

1915 

1916 

1917 

Live  stock 

2  1,419,290 

7,750,182 

2  2,583,251 
25, 116, 199 
9,849,569 
14,770,943 

2  1,434,066 

2  1,244,271 
6,594,526 

2  1,837,353 

12,638,820 
6,172,664 
12,983,820 

2  1,056,413 

2  1,317,456 

5,165,284 

2  2,193,717 
12,193,827 
6, 691, 627 
13,860,410 

2  976,982 

2  2,468,811 

4,917,534 

2  2,142,587 
15,341,500 
6,926,385 
13,339,848 

2  805,765 

2, 447, 005 

Foods: 

Animal                                .         .  . 

3  219  563 

Vegetable — 

Fruits                                    

1,985,268 
42,533,150 

9,390,455 
15, 607, 226 

Spices  and  other  condiments 

Vegetables  and  cereals 

Tea,  coffee,  cocoa,  etc 

Flours,  pastes,  starches,  and  other 
food  products 

914,367 

Total  foods 

61,504,210 

41,283,596 

41,081,847 

43, 473, 619 

73,650,029 

Tobacco  and  manufactures  of 

5,174,492 

4,415,995 

3,786,984 

6,519,479 

8,473,515 

Drinks: 

Wines  ... 

12,934,732 

5,068,042 
2  1,153,760 

8,246,768 
2.967,132 
2  661,508 

6,465,388 
3,147,108 
2  480,  561 

5,377,703 
3,313,269 
2  479,350 

4,953,530 

3,035,317 

615,868 

other  drinks 

Total  drinks 

19,156,534 

11,875,408 

10,093,057 

9,170,322 

8,604,715 

Textile  materials  and  manufactures  of: 
Silk 

5,210,926 
13,434,969 
43,726,148 
41,613,198 

3,319,218 

8, 657, 447 

26,154,712 

20,210,356 

3,150,948 

4,440,375 

25,040,688 

35,410,576 

4,749,754 

8,9n,179 

46,918,990 

32,590,556 

4  055  811 

Wool 

15^594; 158 
51,544,687 
13,357,410 

Cotton 

other  fibrous  textiles 

Total  textiles           

103,985,241 

58,341,733 

68,042,587 

93,170,476 

84,552,066 

Oils,  fixed,  mineral  (petroleum),    volatile, 
and  fats      .  . 

17,642,108 

21,385,347 

2,603,894 

14,654,546 

16,224,251 

1, 754, 106 

27,416,722 

20,885,230 

1,570,799 

20,138,710 

22,306,850 

2,734,164 

21,741,540 
19,706,699 
3,822,349 

Products,  chemical  and  pharmaceutical 

Colors  and  dyes 

1  Source:  Anuario  del  Comercio  Exterior,  and  El  Comercio  Exterior,  Boletfn  No.  176. 

2  Nominal  values.    These  are  used  because  no  corrected  values  are  published  for  these  items  in  the  years 
given.    Real  and  nominal  values  in  such  cases  differ  only  slightly. 


94 


ECOl^OMIC  POSITION   OF  AEGENTINA  DURING  THE  WAR. 


Imports  into  Argentina  by  groups  op  Articles  for  1913-1917:   Real 
Value  s — Continued . 

[Gold  pesos.] 


Groups  of  articles. 

1913 

1914 

1915 

1916 

1917 

Woods,  other  woody  substances  and  their 
manufactures: 
Raw  materials  and  those  slightly  worked. 
Manufactures    

20,392,022 
6,683,866 

10,259,954 
4, 402, 808 

10,666,073 
3,499,810 

14,600,957 
5,047,612 

14,194,966 
2,448,510 

27,075,888 

14,662,762 

14,165,883 

19,648,569 

16  643  476 

Paper  and  manufactures  of: 

5,843,027 
3,781,702 

4,317,173 
3,081,477 

5,119,810 
2,473,684 

8,902,218 
3,516,724 

11,277,779 
1,885,947 

Manufactures 

9,624,729 

7,398,650 

7,593,494 

12,418,924 

13,163,726 

5,734,313 

3,938,861 

2,645,722 

2, 840, 698 

3, 217, 714 

Iron  and  manufactures: 

Raw  materials  and  thoseslightly  worked. 

29,722,370 
247,735,439 

18,919,190 
34,229,700 

14,859,949 
17, 551, 121 

13,183,580 
29,436,940 

14,631,859 
27,273,337 

Total  iron 

77,457,809 

53,148,890 

32,411,070 

42,620,520 

41,905,196 

Other  metals  and  manufactures  of: 

Rawmaterialsand  those  slightly  worked. 
Manufactures    

3,539,455 
211,303,039 

2,609,220 
5,711,996 

3,951,562 
2,910,899 

5,486,527 
6,089,307 

11,597,737 
7  493  981 

14,842,494 

8,321,216 

6,862,461 

10,575,834 

19,091,718 

15,703,491 

7,505,124 

10,412,799 

13,243,771 

11,745,722 

Stone,  earth,  glassware,  and  ceramic  prod- 
ucts: 
Raw  materials  and  those  slightly  worked. 

53,013,001 
6,368,045 

40,557,811 
4,491,747 

41,442,894 
3,210,535 

48,964,086 
2,959,035 

27,077,657 
2,325,620 

Total 

59,381,046 

45,049,558 

44,653,429 

51,923,121 

24,403,277 

Electrical  materials 

18,117,277 
28,040,306 

13, 850, 435 
18, 860, 562 

6,055,699 
7-0fl2..'i67 

5,664,652 
8,212,030 

8  558  180 

13^594;  251 

Grand  total 

496,227,094 

322,529,964  305,488,006 
1 

366,130,571 

380,321,178 

The  following  tables  show  the  origin  of  some  of  the  more  important 
agricultural  and  industrial  materials : 

Imports  of  Agricultural  Implements,  1913,  1917,  and  1918.^ 
[Values  in  United  States  currency.] 


By  countries,  1913. 

Mowers 

and 
reapers. 

Binder 
twine. 

Thrashing 
machines. 

Plows. 

Plow- 
shares. 

Seeders. 

Germany 

$23,059 

54,774 

$33,366 

$26,8Q8 

$9, 196 

2,824 

129 

$1,243 

Belgium 

Canada 

$304,835 

11,493 

21,799 

15,257 

Cuba 

4,439 

1,484,826 

43,  111 

Umted  States 

640,558 

29,973 

863,289 

1,737 

870, 101 
460,025 

1, 190, 554 
8,077 

212, 147 

1,898 

172 

339,595 

United  Kingdom 

Austria- Hungary 

1,201 

6 

Denmark 

France 

965 

3,599 

405 

217 

64 

6,796 

29 

Chile 

Spain 

21 

Italy 

29 

............ 

........... 

Total  1913 

1,840,392 
162,902 
105, 658 

1,610,209 

1,614,874 

49,254 

1,377,151 
49,293 
41,881 

1,251,530 
397, 542 
200,284 

233, 162 
165,311 
108,008 

356, 174 

Total  1917  2 

77,223 

Total  1918  (6months)2.... 

70,348 

1  Source:  Anuario  del  Comercio  Exterior  de  la  Reptlblica  Argentina. 
*  Not  listed  by  coimtries  for  1917  and  1918. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 


95 


United  States  Exports  to  Argentina  of  Agricultural  Implements,  Fiscal 
Years  1913-1918:  Values. ^ 


Articles. 

1913 

1914 

1915 

1916 

1917 

1918 

Agricultural  machinery: 

Hay  rakes  and  tedders 

Mowers  and  reapers 

Planters  and  seeders 

Plows  and  cultivators 

Thrashers 

$29,011 
1,650,688 

323,164 
1,755,705 
1,318,397 
1,346,554 

$78,202 
1,102,499 

309,349 
1,420,748 

089, 7.50 

744,338 

$2,649 
412,289 
119,953 
666,613 
191, 596 
348,506 

$48, 295 
770,436 
85,688 
1,413,763 
143,822 
916, 195 

$16, 123 
347,271 
123,336 
1,032,960 
67  921 
979,630 

$36,306 
349,668 
100,770 
890,006 
87,255 
505,808 

All  other  and  parts  of » 

Total 

6,423,519 

33,776 

1,928,006 

4,344,886 

94,497 

1,200,590 

1,741,606 

3,160 

264,140 

3,378,199 

21  901 

1,890,357 

2,567,241 

8,004 

911,429 

1,969,813 

42,  111 

3,266,790 

Milling  machinery 

Binder  twine 

1  Source:  Foreign  Commerce  and  Navigation  of  the  United  States. 

2  iQcluding  corn  shellers  and  huskers,  and  shredders,  fanning  and  cane  mills,  etc. 


Principal  Sources  of  the  Important  Textile  and  Metal  Imports,  1913  and  1915. 


1913 

Articles. 

Total  imports. 

Percentage  from— 

Gold 
pesos. 

U.S. 
currency. 

United 
States. 

United 
King, 
dom. 

Ger- 
many. 

France. 

Italy. 

Bel- 
gium. 

Textiles: 

Colored  woven  prints 

Woolen  cloths 

12, 875, 730 
7,092,134 
4,841,056 
4,119,377 
3,549,973 
2, 852, 401 
1, 682,  660 
1,671,248 
1,313,442 
1,001,915 

6,383,860 
6,378,999 
6,263,680 

6,210,438 
5,041,415 

4,945,631 
4,234,929 
4.119,377 
3,486,324 
2,734,468 
2,125,538 
2,024,902 
1,454,376 
1,331,724 
5,382,604 

$12,425,079 
6,940,409 
4,671,619 
3,975,199 
3,425,724 
2,752,567 
1,623,767 
1, 612, 754 
1,267,472 
966,847 

6,160,425 
6,155,734 
6,044,451 

5,993,073 
4,864,965 

4,772,534 
4,086  706 
3,975,199 
3,364,303 
2,638,762 
2,051,144 
1,954,030 
1,403,473 
1,285,114 
5,194,213 

4.7 
7.1 

26.1 

13.5 
5.0 

3.1 
2.5 

""i'.d 
29.1 
23.3 
12.0 
8.3 
24.3 
19.3 

40.0 
63.2 
78.3 
67.5 
67.9 
11.7 
34.0 
19.1 
42.0 
51.1 

84.4 

9.7 

3L8 

21.8 
72.1 

40.9 
58.0 
67.5 
75.6 
21.7 
11.0 
62.0 
89.7 
36.5 

8.9 
15.9 

3.0 
10.5 
16.0 
12.8 
15.6 

2.6 

12.8 

2.1 

....... 

56.8 
36.4 

38.5 

4.1 
12.7 
13.1 

8.5 
11.8 

9.2 
43.0 

8.1 

7.7 
2.7 

Bleached  cotton  goods. . . . 
Cotton  prints 

2.2 

Woolen  and  mixed  goods. 
Silk  cloth 

Cotton  and  silk  goods 

Spun  cotton,  unbleached 

i2.5 

Cotton  and  woolen  goods 
Linen  cloth 

26.8 
13.0 

6.5 
47.4 
29.6 

46.4 
10.0 

46.6 
21.4 
10.5 
18.3 
25.5 
61.7 
22.9 

9.5 
12.6 

1L8 
2.12 

Iron  and  steel  products: 

Galvanized  iron 

3.9 

Sheet  iron 

34.4 

Steel  rails 

Machinery  (various 
kinds).. 

Railway  material 

9.8 

Wire  cables  for  electrical 
purposes 





6.2 

Wrought  iron 

12.6 

Iron  columns  and  beams 
Locomotives 



13.1 

2.3' 

Spare  parts  of  machinery 

10.9 

Galvanized  wire 

Galvanized-iron  pipes 

Railway  cars 

2.8 

Bolts  and  nuts 

14.4 
16.3 

16.0 

Automobiles 

30.8 

9.6 



124236°— 20 7 


96 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 


Principal  Sources  of 

THE  Important  Textile 
1915— Continued 

AND  Metal 

Imports,  1913  and 

1915 

Total  imports. 

Percentage  from- 

Articles. 

~ 

Gold 
pesos. 

U.S. 
currency. 

United 
States. 

United 
King- 
dom. 

Ger- 
many. 

France. 

Italy. 

Bel- 
gium. 

Textiles: 

Colored  woven  prints 

6,932,932 

3, 105, 206 

3,439,899 

2,263,171 

1,083,681 

2,070,135 

644,516 

886,284 

0) 

0) 

2,845,990 

535,640 

1,445,126 
1,690,786 

1,689,251 
3,371,810 

761,330 

1,222,300 

973,029 

S 

632,080 

$6,690,279 

2,996,524 

3,319,503 

2,183,960 

1,045,752 

1,997,680 

621,958 

855,264 

0) 

0) 

2,746,380 

510,893 

1,394,547 
1,631,608 

1,630,127 
3,253,797 

734,683 

1,179,520 

938,973 

i 

609,957 

1.3 
3.6 

■  "is' 

44.9 
69.8 
87.2 
76.7 
73.1 
16.8 
22.7 
81.8 

3.7 
3.7 

1.3 
9.1 

44.7 
8.5 
9.3 
14.1 
12.0 
14.6 
32.3 
11.4 

1.9 

Bleached  cotton  goods 

Cotton  prints 

2.1 

7.8 

"""3.' 9' 

'"'48.' 5' 
31.9 

Woolen  and  mixed  goods. 
Silk  cloth 

Cotton  and  silk  goods 

Spun  cotton,  imbleached 
Cotton  and  woolen  goods 

Linen  cloth 

Iron  and  steel  products: 

Galvanized  iron 

26.5 

71.7 

Sheet  iron  

Steel  rails 

61.7 

31.9 
8.6 

14.3 
10.0 

16.9 

31.8 
90.0 

50.9 
87.5 

21.4 
10.6 

Machinery  (various 
kinds)                    

15.7 

Railway  material 

Wire  cables  for  electrical 
purposes 

31.6 

Wrought  iron 

'■ 

Iron  columns  and  beams 

"35.3 

99.0 
34.5 
83.5 

Spare  parts  of  machinery 
Galvanized  wire 

7.0 

6.8 

Galvanized-iron  pipes .... 

Railway  cars 

Bolts  and  nuts 

Automobiles 

73.1 

5.0 

9.3 

6.5 

Less  than  $500,000. 


DIRECTION  OF  TRADE. 


The  greater  part  of  the  foreign  trade  of  Argentina  is  normally 
carried  on  with  the  European  nations.  This  amounted  to  52  per 
cent  of  the  total  in  1915  and  70  per  cent  in  1913.  The  two  features 
responsible  for  the  big  business  involved  are :  (1 )  The  European  need 
for  Argentine  products,  and  (2)  the  heavy  investments  of  European 
capital,  which  are  conducive  to  trade  connections.  Before  the  war 
England  was  first  and  Germany  second  among  the  customers  of 
the  Republic.  Graph  No.  19  shows  the  changes,  in  real  values,  which 
took  place  during  the  war.  The  United  States  was  brought  into 
first  position  and  the  German  trade  became  negligible.  Italy, 
France,  and  Spain  conducted  an  appreciable  portion  of  the  trade. 
The  war  also  stimulated  trade  between  the  South  American  Repub- 
lics. The  trade  of  Argentina  with  its  neighbors  is  of  growing 
importance,  and  the  amount  of  business  with  Brazil  is  assuming 
large  proportions. 

Imports  show  that  the  lost  import  trade  from  Germany  and  the 
reduced  imports  from  other  European  countries  are  partially  offset 
by  increased  trade  with  Latin  American  countries.  Brazil  and  Chile 
lead  in  this  increase,  each  showing  a  gain  of  500  per  cent.  The  value 
of  imports  from  Brazil  were,  in  1917,  $36,549,985,  as  compared  with 
$3,601,596  from  Chile. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR.  97 

•ARGENTINA- 
DIRECTION  OF  TRADE, 1913-19I7. 


IMPORTS  BY  COUNTRIES.GROUPS  OF  COUNTRIES  AND  VALUES  IN$. 


ONS  or  f 
I   ...  I   ...   I 


*H  ila 


TOTAL  VALUCS  tM  f 

47a.654.14  a 

3  1  1.24  1.4  I  5 
t94.79S.92  7 
3}5.31S.997 
36&.OO9.957 


EXPORTS  BY  COUNTRIES. OROUPS  OF  COUNTRIES  AND  VALUES  IN $. 


LEGEND. 

COUNTRieS  AND  OROUPS  OF  COUNTRIES 


UNITED  STATES 


EUROPEAN 
ALLIES 


t/NITCD  KINOOOM-1 
FRANCe-2 
ITALY  -  3 
BELGIUM- 4 
RUSSIA  -5 


EUROPEAN 
NEUTRALS 


CENTRAlJgermanv-i  ryyy^l        LATIN  AMERICAN 

POWERS  |'^"*"r""^-«"'^CARy.2  LjiiJ       COUNTRIES 


BRAilL-  » 

WRf  CfAV-  Z 

BOLIVIA 

CHILE 

CUBA 

MCjflCO 

PARAfiUAV 

PERU 


SPAIN-  I 

SWITZCRLA 

HOLLAMD 

SWEDEN 

NORWAY 

DENMARK 


ALLOTH 
COUNTRl 


ER     I 1 

ES    I 1 


The  export  trade  to  the  Central  Powers  went  almost  entirely 
to  the  Allies,  this  trade  being  largely  in  foodstuffs  for  the  armies. 
The  increase  in  exports  to  the  United  States  is  particularly  striking. 


98 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


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100      ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 


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ECOITOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR.       101 


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102       ECOJ^OMlC  POSITION  OF  ARGENTllfA  DtimiifG  THR  WaS. 
TRADE   WITH  CERTAIN   COUNTRIES. 
MEDITERRANEAN  COUNTRIES. 

In  1013  Italy  held  fifth  place,  in  1915  third  place,  and  in  1917 
fourth  place  in  the  list  of  Argentina's  customers.  This  prominent 
position  is  due  primarily  to  the  number  of  Italians  who  have  come 
to  live  in  Argentina.  Since  1860  Italy  has  sent  2,250,000  emigrants, 
and  in  1913,  114,252  Italians  entered  the  Republic.  These  numbers 
are  surpassed  only  by  the  figures  of  Spanish  immigration.  Italians 
comprise  10  to  15  per  cent  of  the  population  of  Buenos  Aires.  These 
settlers  not  only  do  business  within  the  Republic  on  behalf  of  the 
mother  country,  but  their  demands  for  home  products  and  needs  for 
adequate  shipping  facilities  stimulate  trade  with  Italy.  The  same 
conditions  assist  in  developing  the  Spanish  and  French  trade. 

Italy  imports  substantial  quantities  of  Argentine  maize,  linseed, 
oats,  wool,  and  hides.  Its  exports  to  Argentina  of  textile  and  steel 
products  are  shown  in  the  table  on  pages  95  and  96.  Other  com- 
modities supplied  by  Italy  are  as  follows : 

Argentine  Imports  from  Italy,  1913. 


Commodities. 

Total  imports  into  Argen- 
tina. 

Per  cent 
from 
Italy. 

Gold  pesos. 

U.  S.  cm-- 
rency. 

Olive  oU 

4,304,094 
3,520,546 
3,431,570 
3,363,600 
2,018,016 
1,994,524 
1,821,701 
1,215,266 

$4,153,451 
3,397,327 
3,311,465 
3,245,874 
1,947,385 
1,924,716 
1,757,941 
1, 172, 732 

62.0 

Wines 

37.0 

Cleaned  rice...                                    .         .         .... 

50.0 

Vermouth 

74.3 

Cheese 

74.5 

Patent  medicines                                                         .     . 

14.3 

Watches 

11.7 

Cisars 

70.6 

These  imports  are  demanded  by  the  Italians  living  in  Argentina. 

The  Spanish  trade,  although  less  important,  is  similar  to  the 
Italian  and  depends  primarily  upon  the  requirements  of  the  Span- 
iards living  in  Argentina  for  native  products.  In  1 9 1 3  Spain  exported 
Erincipally  olive  oil,  ordinary  wine,  cleaned  rice,  sardines,  and  printed 
ooks.  During  the  war  it  increased  its  shipments  of  textile  materials, 
rice,  and  wines. 

Before  the  war  France  held  fourth  place  in  Argentine  trade,  main- 
tained this  position  in  1915,  and  in  1917  held  third.  The  trade  is 
similar  to  that  of  Italy.     Special  imports  from  France  were  as  follows : 


Argentine  Imports  from  France,  1913. 

Commodities. 

Total  imports  into  Argen- 
tina. 

Per  cent 

from 

France. 

Gold  pesos. 

U.  S.  cur- 
rency. 

Automobiles                                   

5,382,604 
2,852,401 
1,994,524 
1,283,783 

$5,194,213 
2,752,567 
1,924,716 
1,238,851 

36.8 

Silk  cloth                                                                          

56.8 

56.1 

76.6 

ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR.       103 

France  exports  few  steel  products.     Its  textile  exports  were  fairly 
well  maintained  during  the  first  two  years  of  the  war. 

COUNTRIES  OF  NORTHWESTERN  EUROPE. 

The  value  of  trade  with  these  countries  in  1913  is  shown  in  the 
following  table: 

Argentine  Trade  with  Northwestern  Europe,  1913  and  1915. 


1913 

1915 

Countries. 

Cold  pesos. 

•  U.  S.  cur- 
rency. 

Gold  pesos. 

U.  S.  cur- 
rency. 

Belgium  

54,685,779 

26,697,877 

4,197,865 

3, 339, 455 

$52,771,777 

25,763,451 

4,050,940 

3,222,574 

904,115 

853,746 

20,812,554 

7,083,051 

4,165,070 

2,154,507 

$823,865 

20,084,115 

6,835,144 

Netherlands             

Sweden 

Norway 

4,019,293 
2,079,099 

Denmark 

936,907 

These  countries  import  mostly  grains.  Belgium  sends  textiles 
and  steel  products,  as  shown  in  the  table  on  pages  95  and  96.  Much 
of  the  cement  for  Argentine  construction  came  From  the  same  source. 
The  Netherlands  sends  cheese  and  also  reexports  rice  and  tobacco 
received  from  the  East  Indies.  The  Scandinavian  countries  ship  fish 
and  news  print  paper. 

OTHER  LATIN  AMERICAN  COUNTRIES. 

A  large  volume  of  trade  is  carried  on  with  the  neighbors  of  Argen- 
tina. The  following  values  show  that  the  war  has  increased  this 
business : 

Argentine  Trade  with  Chile,  Paraguay,  Uruguay,  Bolivia,  and  Brazil. 

[United  States  currency.] 


Countries. 


1913 


1915 


1917 


Brazil.... 
Uruguay. 
Paraguay 

ChUe 

Bolivia.., 


$35,710,833 
10,160,462 
4,552,688 
2,819,423 
1.459,045 


$35,531,949 

10,450,504 

4,495,731 

2,750,219 

990,133 


$58,571,757 
17,047,140 
8,274,115 
7,813,812 
1,476,685 


Among  the  most  important  commodities  of  export  were  live 
animals,  especially  to  Uruguay  and  Chile.  They  were  purchased  to 
improve  the  stock  in  these  regions.  On  the  other  hand,  cattle  on  the 
hoof  were  sent  in  from  Paraguay,  Uruguay,  and  Bolivia,  because 
the  large  Argentine  meat-packmg  establishments  desired  these 
products.  In  1915  the  value  of  cattle  imported  from  these  three 
countries  approximated  $900,000.  Argentina  sold  to  its  neighbors 
the  same  year  $3,000,000  worth  of  cattle. 

Brazil  does  the  biggest  business  with  Argentina.  Both  are  pro- 
gressive coimtries,  but  in  different  climates.  This  explains  the  large 
volume  of  trade.   Argentina  in  1915  exported  to  Brazil  wheat  worth 


104       ECON^OMIC  POSITION  OF   ARGENTINA  DURING  THE  WAR. 

$15,000,000  and  flour  worth  $5,000,000.  These  two  items  represented 
over  95  per  cent  of  the  exports  to  Brazil.  Argentina  purchased  goods 
worth  $13,000,000,  including  coffee,  $1,800,000;  yerba  mate,  $5,000,- 
000;  and  tobacco,  $1,500,000. 

The  trade  with  Chile  is  insignificant  because  the  nitrates  are  not 
required  in  Argentina,  and  the  surplus  products  of  the  latter  country 
are  raised  in  Cmle.  Flour  and  hay  are  the  principal  Argentine  exports, 
while  animals,  fruits,  vegetables,  wines,  and  malt  are  returned. 
Paraguay  sends  animals  and  yerba  mate.  Uruguay  receives  food 
products  and  sends  back  pastoral  commodities  and  practically  all 
the  sand  imported  for  building  purposes. 

Trade  with  Mexico  increased  from  $1,500,000  in  1913  to  $18,000,000 
in  1915;  because  the  Mexican  oil  fields  supplied  fuel  to  Argentina. 

Imports  of  Naphtha  from  Mexico  and  the  United  States. 


1913 

1915 

Commodity. 

Mexico. 

United 
States. 

Mexico. 

United 
States. 

Naphtlia 

Per  cent. 
11.1. 

Per  cent. 
85.6 

Per  cent. 

58.8 

Per  cent. 
41.0 

$11,931,840 

$25,602,407 

In  1916  and  1917  this  trade  was  limited  and  Mexican  imports 
fell  to  normal. 

Cuba  increased  its  trade  slightly  during  the  war.  Its  imports,  which 
are  small,  consist  chiefly  of  corn  (which  forms  about  97  per  cent  of 
the  total  from  Argentina).  Cuba  exported  about  $2,500,000  worth 
of  goods  to  Argentina  in  1915,  and  tobacco  ($800,000)  was  the 
principal  item.    It  exports  practically  no  sugar  to  Argentina. 

JAPAN    AND   BRITISH   POSSESSIONS. 

Japan  is  expecting  increased  trade  in  Argentina.  From  1,004,330 
gold  pesos  in  1913  it  advanced  to  5,239,806  pesos  in  1917.  Sixty  per 
cent  of  this  trade  is  on  the  import  side  and  consists  principally  of 
silks  and  rice.  Better  shipping  facilities  and  the  opening  of  a  branch 
of  the  Yokohama  Specie  Bank  in  Buenos  Aires  in  1918  are  factors 
which  will  strengthen  this  trade. 

British  possessions  sent  in  55  per  cent  of  the  burlap  purchase  of 
$12,000,000  in  1915.  This  is  employed  for  bagging.  They  also  are 
taking  over  some  of  the  import  trade  in  rice,  and  in  1915  sold  to 
Argentina  almost  50  per  cent  of  the  $800,000  tea  purchase. 

UNITED   KINGDOM.^ 

In  the  pre-war  years  1912  and  1913  the  percentages  of  Argentina's 
trade  with  the  united  Kingdom  compared  with  Argentina's  total 
trade  are  as  follows: 


Years. 

Imports. 

Exports. 

Total. 

1912 

Per  cent. 
30.9 
31.1 

Per  cent. 
25.3 
24.1 

Per  cent, 
27.8 

1913. . 

27.7 

lAU  tables  in  this  section  are  derived  from  "Argentine  International  Trade,"  Argentine  Department  of 
Agriculture.  The  values  are  all  *^  nominal  values,^'  which  explains  the  differences  between  the  figures  in 
this  section  and  those  in  the  table  on  p.  98. 


ECONOMIC   POSITION"   OF  ARGENTINA  DURING  THE* WAR.       105 

The  following  figures  are  those  of  the  war  years : 


Years. 

Imports. 

Exports. 

Total. 

1914 

Per  cent. 
34.0 
35.6 
28.2 
21.8 

Per  cent. 
29.3 
24.4 
29.4 
29.2 

Per  cent. 
31.4 

1915 

29.7 

1916                                    

28.9 

1917 

26.2 

The  persistence  of  the  English  trade  is  caused  by  two  economic 
conditions,  viz,  England's  lack  of  cereal  and  meat  supplies  and  its 
possession  of  surplus  capital.  As  shown  in  Chapter  IX,  the  British 
are  greatly  responsible  for  Argentine  development,  because  of  capital 
invested  in  the  railways.  Interest  and  dividends  on  these  and  other 
investments  pay  for  part  of  the  imports  into  the  United  Kingdom. 
The  British  exports  also  tend  to  increase,  as  is  indicated  by  the 
heavy  shipments  of  railway  supplies.^  These  conditions,  together  with 
profits  from  investments,  facilitate  international  payments,  and  the 
ease  of  making  exchange  reacts  upon  and  increases  trade. 

The  British  imports  of  Argentina  products  show  a  high  value  in 
both  grain  and  meat  commodities,  but,  absolutely  and  relatively, 
the  meat  imports  were  the  more  important  during  the  war  years. 


Products. 

Value  of  imports  into  United  Kingdom 
from  Argentina. 

Percentage  of  total  ex- 
ported from  Argentina. 

1913 

1915 

1917 

1913 

1915 

1917 

Grains    (including    wheat,   maize, 
oats,  and  linseed)       

$107,768,817 
41,914,644 

$50,568,984 
70,610,881 

$18,406,045 
96,156,809 

37.1 
96.5 

17.1 
82.9 

15.5 

Meat    products    (including    frcen 
beef,  mutton,  extracts,  preserved 
meats,  and  butter)         .  . 

70  6 

These  figures  show  the  relative  decrease  in  each  group  caused  by 
the  war.  Greater  participation  in  the  trade  of  the  mother  country 
on  the  part  of  British  colonies,  especially^  Canada  and  Australia, 
probably  explains  the  reduction.  A  more  interesting  feature,  how- 
ever, is  the  relatively  unimportant  part  played  by  England  in  the 
grain  exports  of  Argentina  when  compared  with  the  high  percentage 
of  its  meat  imports.  This  situation  is  probably  dependent  upon  one 
or  more  of  the  following  conditions.  Several  oi  the  nations  of 
Europe  require  wheat,  and  purchase  it  in  exchange  for  commodities 
sold  Argentina.  Thus  the  wheat  crop  is  well  distributed.  In  1913 
the  United  Kingdom  received  37.1  per  cent;  Germany,  19.4  per  cent; 
Belgium,  6.3  per  cent;  and  Italy,  4.4  per  cent.  When  it  comes  to 
the  disposal  of  the  meat  supply,  these  other  nations  do  not  participate 
to  such  an  extent,  because  of  small  per  capita  consumption.  In 
former  years  Great  Britain  purchased  much  beef  from  the  United 
States.^  With  the  lessening  of  this  supply  few  sources  are  left  except 
Argentina,  and  it  is  probable  that  the  trade  with  this  country  will 
continue  to  increase.  Many  American  packers  who  formerly  did 
business  with  the  British  have  established  branches  in  Argentina 

1  See  p.  96. 


106       ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 

and  will  probably  maintain  their  European  connections,  sending 
large  amounts  directly  from  that  base.  The  entrance  of  American 
capital  into  the  industry  accounts  for  the  increased  output  in  recent 
years  and  also  for  the  British  reduction  from  96.5  per  cent  to  70.6 
per  cent.  The  United  States  received  a  negligible  quantity  of  beef 
m  1913,  and  11  per  cent  of  Argentina's  exports  of  beef  in  1915. 

Minor  exports  of  value  to  Great  Britain  are  hides,  wool,  and 
quebracho  extract. 

During  the  later  years  of  the  war  the  British  imports  into  Argen- 
tina show  a  decrease.  This  is  due  to  a  war  condition  and  does  not 
indicate  a  lessening  hold  in  the  Argentine  market.  A  vital  factor  in 
many  lines.  Great  Britain  practically  monopolizes  the  trade  in  several 
commodities.  The  figures  in  the  table  on  pages  95  and  96  show  im- 
ports in  1913  and  1915  of  textile  and  iron  and  steel  products.  The 
increase  in  the  percentages  of  many  of  these  connnodities  is  due  to 
the  absorption  of  the  lost  German  trade. 

Besides  the  place  held  in  the  groups  mentioned  above,  the  United 
Kingdom  makes  heavy  shipments  of  coal.  In  1913  the  imports  were 
valued  at  $28,000,000,  and  the  United  Kingdom  furnished  98.3  per 
cent.  In  1915  this  was  reduced  to  72  per  cent,  and  that  of  the  United 
States  became  25.6  per  cent.  As  long  as  the  English  and  Welsh  coal 
supply  remains  abundant  and  ships  are  required  to  bring  back  Ar- 
gentine products,  a  large  per  cent  of  Argentina's  coal  supply  will  be 
furnished  by  the  United  Kingdom. 

UNITED   STATES. 

Argentina's  trade  with  the  United  States  during  the  three  years 
preceding  the  war  was  surpassed  by  that  of  the  United  Kingdom, 
Germany,  and  France.  During  these  years  it  varied  little  in  value 
and  showed  a  decided  balance  against  Argentina. 

Pre-War  Trade  with  the  United  States,  1911-1913. 
[United  States  ciurency.) 


Years. 

Imports  from 
United  States. 

Exports  to 
United  States. 

Total  trade 

with  United 

States. 

Balance 

against 

Argentina. 

1911 

$56,515,107 
66,242,864 
70,457,225 

$24,685,655 
32,632,786 
23,728,409 

$81,200,762 
98, 875, 650 
94,185,634 

$31  828  452 

1912 

33  610  096 

1913 

46'  728'  816 

During  the  four  years  of  the  war,  not  only  did  this  trade  increase 
until  the  United  States  reached  first  place,  but  the  balance  changed 
in  favor  of  Argentina.     (See  graph  No.  19.) 

War  Trade  with  the  United  States,  1914-1917. 


Years. 

Imports  from 
United  States. 

Exports  to 
United  States. 

Total  trade 

with  United 

States. 

Balance  in 

favor  of 
Argentina. 

1914 

$41,984,982 

72,944,239 

103,243,910 

133,251,948 

$47,737,114 
90, 426, 362 
115,539,590 
155,626,287 

$89,722,096 
163,370,601 
218,783,500 
288,878,235 

$5  752  132 

1915                                                .... 

17!  482!  123 
12,295,680 
22,374,339 

1916 

1917 

ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR.       107 

Comparison  OF  THE  Exports  OP  THE  Principal  Commodities  TO  the  United  States 
AND  THE  United  Kingdom,  1912,  1915,  and  1917. 


Value  of  total  exports 

Percentage  of  exports— i 

rrincipal  commodities. 

(gold  pesos). 

United  States. 

United  Kingdom. 

1912 

1915 

1917 

1912 

1915 

1917 

1912 

1915 

1917 

Wheat 

$97,835,174 

108,908,193 

21,858,517 

34,285,076 

4,836,860 

34,285,076 

5,613,971 

1,769,882 

17,285,501 

24,844,075 

58,148,664 

$132,632,673 
93,475,450 
19,065,704 
46,100,866 
15,873,372 
78,351,614 
6,306,263 
11,244,288 
15,290,278 
27,482,588 
55,579,000 

$60,632,191 
39,262,221 
10,589,801 
12,928,966 
14,140,210 
86,256,995 
7,834,100 
36,681,451 
14,869,644 
40,538,214 

101,300,020 

1 
2 

....„ 

37 
52 
42 
16 
12 
96 
99 
98 
3 
18 
15 

15 
17 
40 
21 
66 
82 
83 
87 

"'ii' 

14 

15 

Maize 

20 

Oats 

3 

Linseed 

10 
32 



25 
12 
11 
17 

50 

""5 

67 
50 
70 

12 

Quebracho  extract 

Beef  (frozen  and  chilled) . . 
Mutton(frozen  and  chilled) . 
Preserved  meat     ....    . . 

23 
72 
80 
72 

58 
34 
10 

73 

70 
44 

2 

Salt  oxhides             

30 

Wool    .              

7 

Total  value  of  all 

501,667,369 

582,179,279 

550,170,049 

1  Where  no  per  cent  is  indicated  the  exports  are  less  than  1  per  cent. 
IMPORTS    FROM   THE    UNITED   STATES. 

The  following  table  shows  the  principal  imports  from  the  United 
States.  Some  of  these  were  important  before  the  war  and  have 
continued  so ;  others  have  gained  prominence  due  to  abnormal  con- 
ditions ;  while  trade  in  some  commodities  has  fallen  off. 

Principal  Imports  from  the  United  States.^ 


Commodities. 


1913 


1914 


1915 


1916 


1917 


1918 


Agricultural  implements,  and  parts  of: 

Hay  rakes  and  tedders 

Mowers  and  reapers 

Planters  and  seeders 

Plows  and  cultivators 

Thrashers 

Another,  and  parts  of 


$29,011 
1,650,688 

323, 164 
1,755,705 
1,318,397 
1,346,554 


$78,202 
1,102,499 

309,349 
1,420,748 

689, 750 

744,338 


$2,649 
412,289 
119,953 
666,613 
191,596 
348,506 


$48,295 
770,436 
85,688 
1,437,763 
143,822 
916,195 


$16,123 
347,271 
123,336 
1,032,960 
67,921 
979,630 


$36,306 
349,668 
100,770 
890,006 
87,255 
1,045,109 


Total 

Automobiles,  and  parts 

Bagging 

Binder  twine 

Cars,  for  railways 

Cement,  hydraulic 

Coal  and  coke 

Cotton  cloth: 

Duck 

All  other  cotton  cloth- 
Unbleached 

Bleached 

Colored- 
Printed 

Dyed  in  piece 

Dyed  in  the  yarn 

Knit  goods 

Yam 

Electrical  machinery  and  appliances. 
Tires,  automobile 


423,519 
333,873 

75,982 
928,006 
002,422 

84,698 
113,584 


4,344,886 

1,121,444 

59,752 

1,200,590 

476,919 

62, 787 

401,810 


1,741,606 
347,029 
206,080 
264, 140 
160, 865 
218,042 

1,714,928 


3,402,199 

2,321,139 
160,081 

1,890,357 
50,886 
82,012 

2,402,212 


167,268 
3,313 


144,844 
4,310 


9,419 


8,516 


Machinery: 

Pumps  and  pumping  machinery . 

Sewing  machines 

Typewriting  machines 

Windmills 


Malt. 


30,907 

88,813 

575,785 

8,153 

182,780 
880,141 
355,320 
558,146 


67,472 
27,408 
719,313 
21,920 


178,179 
11,612 

7,318 

4,569 

2,457 

169,572 

475,528 

448, 177 

34,096 


578,663 
225,716 

204,291 
135,290 
457, 205 
1,686,512 
2,183,809 
939,959 
488,329 


270,693 
962,682 
300,711 
668,002 


R 


ailway  track  material 


780,114         987,302 
1  Source:  United  States  Statistics, 


66,967  220,401 

126,064  253,866 

110,638  170,987 

259,208  581,053 

400,331  671,132 

166,856  I  211,985 

fiscal  years  191  3-1918. 


2,567,241 

3,940,367 

99,306 

911,429 

38,054 

200,481 

2,842,781 

256,025 

337,097 
652,848 

512,117 
252,048 
2,215,378 
1,657,979 
2,005,538 
1,721,627 
1,301,344 

155,843 
228,937 
238,852 
386,139 
224,021 
20,890 


2,509,114 

5,805,556 

21,463 

3,266,790 

7,310 

402,442 

1,459,582 

557,993 

472,908 
1,200,969 

1,334,116 
3,434,798 
3,046,479 
2,926,772 
3,468,550 
2,626,163 
1,649,840 

297,168 
341,976 
246,515 
590,123 
171,580 
38,648 


108       ECONOMIC   POSITION   OF   ARGENTINA   DURING   THE   WAR. 
Principal  Imports  from  the  United  States — Continued. 


Commodities. 


1913 


1914 


1915 


1916 


1917 


Sheets  and  plates 

Tin  plate,  teme  plate,  and  tagger's  tin 

Tobacco 

Wire,  and  manufactures  of. 

Leather 

Boots  and  shoes 

Oils: 

Crude 

Refined  or  manufactured— 

Fuel  oil  and  gas  oil 

Illuminating  oil 

Lubricating 

Naphtha,  and  light  products 
of  distillation,  and  residuum 

Total 

Paper,  news-print 

Sugar,  refined 

Lumber: 

Oak 

White  pine , 

Yellow  pine 

Spruce 

Furniture  (not  metal) 

Shocks 


944,511 
247,646 
429,597 
1,354,741 
1,845,818 
651,432 


94,232 
442,004 
738,850 
983,874 
881,887 


639,187 
492,941 
343,268 
1,180,948 
637,775 
566,054 


1,056,239 
1,519,110 

262,228 
3,305,790 
1,482,379 

797,683 


1,309,128 
2,954,310 

831,798 
3,723,669 
1,393,865 

708,350 


2,669,564 

7,811,659 

341,006 

3,688,047 

1,096,735 

314,297 


324,558 

35,485 
2,217,028 
1,075,342 

2,385,113 


593,594 

102,442 

1,687,358 

789,185 

3,655,571 


316,864 

11,324 

1,528,548 
672,398 


419,373 

159,358 
1,391,414 
1,284,490 

3,597,821 


542,012 

253,865 
1,559,989 
1,266,175 

3,204,250 


276,609 

98,334 
1,382,505 
1,808,665 

5,450,820 


6,037,526 

709,010 

1,645 

302,827 
564,149 

4,187,234 
458,556 
778,404 

2,360,666 


6,828,060 

447,908 

2,417 

225,540 
443,659 

3,348,137 
413,339 
770,215 

1,019,352 


4,188,983 

806,217 

739 

100,521 

56,953 

1,037,777 

56,829 

187,979 

558,960 


6,852,455 

1,039,360 

238,089 

217,661 
158,061 
1,218,790 
123,258 
192,965 
590,208 


682,129 
1,178,997 
5,705,771 

294,338 
92,936 
638,105 
6,405 
356,180 
684,696 


9,016,933 
1,983,472 
6,483,692 

239,097 
44,731 

851,905 

11,119 

91,043 

1,500,341 


A  glance  at  the  figures  for  1913  will  give  an  idea  of  the  principal 
oommodities  imported  in  pre-war  years.  The  following  table  shows 
those  imports  which  gained  greatly  in  value  during  the  war: 


Imports. 

From  United  States. 

Country  suffer-  • 
ing  greatest 
loss  in  trade. 

1913 

1918 

Cotton  cloth 

$180,000 

30, 907 

88,813 

113,584 

1,333,873 

6,037,526 

836 

709,010 

84,698 

$10,047,264 
2,926,772 
3,468,550 
1,459,582 
5,805,556 
9,016,933 
6,483,692 
1,983,472 
402,442 

Great  Britain, 

Knit  goods  (hosiery  and  underwear) 

Do. 

Yam. . 

Do 

Coal 

Do. 

Automobiles  and  parts 

France. 

Oils 

Sugar 

Germany. 
Do 

Paper.   . . 

Cement 

Belgium. 

With  the  exception  of  coal,  automobiles,  and  oils,  much  of  this 
trade  will  probably  return  to  those  formerly  controlling  it.  The  in- 
creased American  merchant  marine  may  find  coal  as  advantageous  for 
cargoes  as  did  the  British  before  the  war.  The  cheap,  light,  American 
automobiles  have  won  a  reputation  in  rural  Argentina  and  will  be 
purchased  in  increasing  numbers.  Oils,  especially  naphtha,  come 
almost  entirely  from  the  United  States. 

Many  commodities,  such  as  agricultural  inachinery,  railway  cars, 
steel  rails,  electrical  machinery,  special  machinery,  wire,  leather 
goods,  and  lumber  from  the  United  States,  have  decreased  in  value. 
This  follows  the  general  decline  in  the  total  of  Argentine  imports, 
caused  by  limited  shipping  facilities,  and  with  the  restoration  of  nor- 
mal conditions  the  sales  from  the  United  States  will  resume  their  for- 
mer value.  The  United  States  has  a  control,  almost  monopolistic, 
over  several  imports  into  Argentina. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR.       109 

Imports  from  the  United  States  in  1913  and  1915  op  Commodities  Valued  at 
More  Than  $1,000,000  in  1913. 


Commodities. 


Percent- 
age, 1913. 


Percent- 
age, 1915. 


Commodities. 


Percent- 
age, 1913. 


Percent- 
age, 1915. 


Naphtha  (impure) 
Lubricating  oils... 

Kerosene 

Cotton  oil 

Pitch  pine 

Spruce 


85.6 
56.8 


99.0 
98.9 
50.6 


41.0 


99.2 
98.5 
31.3 


White  pine 

Sisal  twine 

Thrashing  machines 
Sewing  machines . . . 
News-print  paper. . . 


75.2 
92.2 
63.1 
59.2 
35.9 


35.6 
99.0 
60.0 


57.0 


In  many  of  these  commodities  the  United  States  will  continue  to 
contribute  the  greater  part  of  the  imports.  Among  such  products 
should  be  mentioned  naphtha,  kerosene,  lumber,  agricultural  machin- 
ery, sewing  machines,  and  typewriters. 


EXPORTS   TO   THE    UNITED    STATES. 

A  study  of  pre-war  figures  from  the  Argentine  official  statistics 
shows  that  the  United  States  received  6.7  per  cent  of  the  Argentine 
exports  in  1912.  The  values  and  nature  of  these  commodities  are 
shown  in  the  following  table : 

Principal  Exports  to  the  United  States,  1912.^ 
[United  States  currency.) 


Commodities. 

To  United 

States. 

To  all  coun- 
tries. 

Percent 

to  United 

States. 

Dried  cowhides 

$9,667,799 
8, 106, 870 
6,707,865 
1,646,815 
1,522,146 
4,605,960 

$16,680,509 

23,974,532 

56,113,461 

33,016,090 

4,667,570 

329,125,400 

58.0 

Salted  cowhides 

30.0 

Wnnl  (nnwHshed) 

10.1 

Flax... .' 

5.0 

Quebracho  extract 

32.6 

All  others 

1.4 

Total 

31,257,455 

463,577,562 

6.7 

1  Source:  Anuario  de  Estadistica,  1912. 

During  the  war  changes  took  place  in  the  export  trade  to  the 
United  States.     These  are  shown  m  the  following  table: 

Principal  Exports  to  the  United  States  during  the  War  Years.* 

[United  States  fiscal  years.] 


Commodities. 

1913 

1914 

1915 

1916 

1917 

1918 

Wool 

$7,254,334 

$18,220,308 

$35,998,752 

$75,119,656 

$104,220,950 

Hides  (cattle): 

Dry 

$6,081,887 
6,435,700 

6,311,746 
9,853,930 

5,611,841 
15,494,034 

7,374,675 
23,132,608 

10,721,194 
21,770,672 

5,210,959 
22,216,934 

Green  or  pickled . 

Total 

12,517,587 

16,165,676 

21, 105, 875 

30, 507, 283 

32,491,866 

27,427,893 

Lin  seed 

702,000 

4,403,987 

14,935,543 

7,309,161 

16,838,818 

»  Source:  United  States  report.  Commerce  and  Navigation. 


110       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 
Pbincipal  Exports  to  the  United  States  during  the  War  Years — Contd. 


Commodities. 

1913 

1914 

1915 

1916 

1917 

1918 

Meats: 

Beef  and  voal 

$5,196,951 
447, 193 

$12,064,195 
1,097,846 

$5,240,834 
1,682,480 

$203,331 
436,473 

$57,146 

Mutton  and  lamb 

167,018 

Total 

5,644,144 

13,162,041 

6,923,314 

639,804 

214, 164 

Skins: 
Sheep 

$776,969 
1,457,242 

522,626 
1, 190, 166 

1,145,655 
1,078,677 

2,073,389 
2,073,956 

6,155,560 

3, 767, 722 

4,694,541 

Goat 

1,761,749 

Total 

2,234,211 

1, 712, 792 

2,224,332 

4,147,345 

9,923,282 

6,356,290 

Quebracho: 

Extract 

1,895,736 
1,299,995 

2,441,083 
899,603 

3,624,632 
703, 882 

6,432,468 
1,598,465 

5,198,667 
1,180,447 

4,660,250 

Wood 

718, 567 

Total 

3, 195, 731 

3,340,686 

4,328,514 

7,030,933 

6,379,114 

6,378,817 

Cora 

476,286 

7,351,336 

4,475,075 

2,543,053 

1,381,709 

2,395,365 

The  increase  in  wool  exports  to  the  United  States  is  remarkable, 
being  an  increase  from  $5,000,000  to  $75,000,000  worth  in  four  years. 
The  explanation  is  f  oim.d  in  the  large  supply  required  by  this  country 
for  military  purposes  and  in  the  fact  that  the  United  States  tended 
to  obtain  a  larger  proportion  from  Argentuia  than  from  British 
sources,  owing  to  the  requirements  of  Great  Britain  for  wool  for 
its  army. 

The  increase  in  the  meat  exports  is  explained  in  part  by  the  grow- 
ing control  of  American  packers  in  the  Argentine  meat  industry. 
The  decrease  in  the  last  two  years  may  be  accounted  for  by  em 
arrangement  between  England  and  the  United  States  to  ship  meats 
direct  to  Europe.     The  linseed  increase  is  due  to  excessive  war  needs. 

Normally  the  trade  is  not  evenly  distributed  throughout  the 
months  of  the  year,  as  shown  in  the  following  figures  for  the  calendar 
year  1913: 

Trade  with  United  States  During  the  Calendar  Year  1913. 


Months. 


Imports. 


Exports. 


Total. 


January... 
February. . 

March 

April 

May 

June 

July 

August 

September- 
October... 
November. 
December. 

Total 


$4,783,189 
3, 761, 723 
4,697,650 
4,136,056 
5,345,050 
3,467,227 
4,478,932 
5,139,818 
5,151,071 
5,168,450 
4,113,394 
4,737,855 


$3,272,237 
2,199,366 
2,553,665 
2,221,202 
1,035,871 
1,038,871 
963,246 
1,270,624 
1,954,880 
1,244,372 
3,251,909 
4.569,424 


54,980,415 


25,575.667 


$8,055,426 
6,961,089 
7,251,315 
6,357,258 
6,380,921 
4,506,098 
5,342,178 
6,410,442 
7,105,951 
6,409,822 
7,365,303 
9,307,279 


80,556,082 


The  imports  average  about  $4,000,000  each,  month,  but  the  ex- 
ports vary,  ranging  from  $963,246  in  July  to  $4,569,424  in  December. 
This  difference  Detween  the  import  and  export  figures  would  be  even 
greater  if  tonnage  statistics  were  given,  for  the  exports  are  heavy, 
while  the  imports  are  of  lesser  bulk.  This  condition  results  in  a  lack 
of  equilibrium  in  shipping  facilities. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR. 


Ill 


GERMANY. 


Ill  1913  Germany  held  second  place  in  Argentine  trade,  doing 
about  one-lialf  as  much  business  as  Great  Britain,  exporting  48 
per  cent  as  much  and  importing  55  per  cent  of  the  British  v^ues. 

Principal  German  Purchases  of  Argentine  Products,   1913. 


Commodities. 

Total  Argentine  exports. 

Percent- 
age sent 

Gold  pesos. 

U.  S.  currency. 

to  Ger- 
many. 

Maize...               

112,292,394 
102,631,143 
49,910,201 
45,270,016 
24,543,795 
4,740,184 

$108,362,160 
99,039,053 
48,163,344 
43,685,565 
23,684,762 
4,574,278 

19  4 

Wheat 

20.4 

Linseed 

35  2 

Wool 

33.1 

Salted  hides 

46.1 

Bran ... 

72  3 

In  the  majority  of  cases  this  trade  seems  to  have  been  generally 
distributed,  but  there  is  evidence  of  (lirect  transfer  in  certain  com- 


modities. 


Transfer  of  Trade. 


Countries  of  destination. 

Wool. 

Linseed. 

1913 

1915 

1913 

1915 

Germany 

Per  cent. 
33.1 

7.4 

Per  cent. 
0.0 
44.1 

Per  cent. 
35.2 
10.2 

Per  cent. 
0  0 

United  States 

25  7 

Germany  sold  many  commodities  to  Argentina  before  the  war,  and 
the  table  on  pages  95  and  96  reveals  the  important  r61e  played  in  the 
textile  and  steel  imports.  Most  of  the  lost  trade  in  textiles  went 
to  England,  while  the  business  in  steel  products  was  transferred  to 
the  United  States.  In  electrical  machmery,  and  other  apparatus 
requiring  technical  accuracy  and  skiU,  the  Germans  dominated,  not 
only  because  of  the  accuracy  of  German  workmanship,  but  on  account 
of  their  heavy  investments  in  Argentine  municipal  electrical  power 
and  lighting  companies. 

Other  imports  from  Germany  not  listed  in  the  above-mentioned 
table  were  as  f oUows : 

Argentine  Imports  from  Germany,  1913. 


Commodities. 

Total  imports  into  Argen- 
tina. 

Percent- 
age 

from 

Ger- 
many. 

Gold  pesos. 

U.  S.  cur- 
rency. 

Automobiles 

5,382,604 
3,991,385 
1,529,367 
1,477,148 
1,293,020 
1,256,255 
1,127,491 
1, 118, 170 
1,091,550 
1,018,210 

$5,194,213 
•3,851,687 
1,475,839 
1,425,448 
1,247,764 
1,212,286 
1,088,029 
1,079,034 
1,053,346 
982,573 

16.3 
31.3 

Sugar,  refined 

Sugar,  unrefined 

Household  utensils 

(i?  q 

Pianos 

79  9 

Paper  for  printed  matter 

82  9 

Dynamos  and  electric  motors 

45  1 

Copper  manufactures 

35.9 

Tramway  material 

Glassware .1 

41  5 

124236°— 20- 


IX.  FINANCE. 

PRESENT  FAVORABLE  CONDITIONS. 

Financially  Argentina  is  probably  stronger  to-day  than  at  the 
opening  of  the  war.  Several  years  of  poor  crops  and  overextension 
01  credit  had  worked  havoc  with  the  national  finances  and  the  opera- 
tions of  the  banks.  These  institutions  were  working  normally  when 
the  war  began,  but  fear  of  the  future  again  hampered  them.  How- 
ever, the  increased  local  trade  during  the  war  years  assisted  bank- 
ing business,  and  the  future  offers  continued  prosperity,  especially 
if  there  is  a  greater  centralized  control  preventing  overextension  of 
credit  and  other  risky  banking  operations.  The  increased  domestic 
trade  has  demanded  a  larger  circulation  of  paper  money.  Practically 
no  gold  came  into  the  countrv  to  provide  an  adequate  reserve  for 
this  increase.  Here  was  a  danger.  Deposits  of  gold  by  debtor 
nations  in  Argentine  legations  abroad  prevented  disaster. 

THE  MONETARY  SYSTEM. 

The  monetary  system  of  Argentina  is  theoretically  on  a  gold  mono- 
metallic basis,  the  unit  of  value  being  the  gold  peso.  Like  the  gold 
dollar  of  the  United  States,  the  gold  peso  is  a  unit  of  value  only  and  is 
not  coined.  It  is  nine-tenths  mie  and  weighs  1,6129  grams.  There 
are  only  two  gold  coins  provided  for  by^  the  monetary  law  of  the  coun- 
try, namely,  the  argentma,  or  5-peso  piece,  and  the  half  argentira,  or 
2i-peso  piece.  The  silver  peso  contains  25  grams  of  silver  nine-tenths 
fine.  One  peso  equals  100  centavos.  In  addition  to  the  silver  peso, 
there  are  50-centavo,  20-centavo,  and  10-centavo  silver  coins.  There 
are  also  some  nickel  and  copper  coins,  as  noted  in  the  table  given  be- 
low, which,  in  addition  to  enumerating  the  various  kinds  of  metallic 
money  coined,  shows  their  values  as  coins  in  United  States  money 
and  also  the  amounts  for  which  they  are  legal  tender: 


Coins. 


Value 
in  U.S. 
money. 


Gold  coins— full  legal  tender: 

Argentina 

i  argentina 

Silver  coins — legal  tender  up  to  10  pesos: 

Peso 

50  centavos 

20  centavos 

10  centavos , 

Minor  coins— legal  tender  up  to  1  peso: 

20  centavos  (nickel) 

10  centavos  (nickel) 

5  centavos  (nickel) 

2  centavos  (copi)er) 

1  centavo  (copper) 


$4.8236 
2.4118 


.9648 
.4824 


.0964 


.0964 
.0482 
.0192 


The  money  in  circulation  is  principally  paper.     Prior  to  1899  there 
was  no  actual  gold  fund  set  aside  for  the  redemption .  of  the  paper 
money.     The  result  was  that  the  value  of  the  currency  was  contin- 
112 


ECONOMIC  POSITION"  OF  ARGENTINA  DURING  THE  WAR.       113 

ually  fluctuating.  This  situation  was  especially  undesirable  in 
matters  involving  foreign  exchange.  The  quotations  for  foreign 
exchange  were  based  on  the  gold  peso,  and  since  the  paper  peso  was 
not  readily  convertible  into  gold,  anj  depreciation  in  the  paper  peso 
adversely  affected  the  rates  of  foreign  exchange.^  For  the  purpose 
of  stabibzing  the  value  of  the  currency,  Argentina  in  1899  established 
the  Office  of  Conversion.  This  office  receives  gold  on  deposit  and 
issues  in  exchange  demand  notes  at  the  rate  of  227.27  pesos  paper 
for  every  100  pesos  of  gold.  The  office  also  exchanges  gold  pesos  for 
paper  pesos  at  the  same  rate;  that  is,  for  every  100  pesos  of  paper 
money  received  it  will  issue  44  pesos  gold.  In  addition  to  the  gold 
held  by  the  Office  of  Conversion,^  the  Government  established  a 
special  fund,  known  as  the  conversion  fund,  which  was  kept  in  the 
Bank  of  the  Argentine  Nation.  This  fund  was  intended  to  be  in- 
creased until  it  reached  128,000,000  pesos  gold,  the  sum  necessary  to 
secure  all  the  paper  money  outstanding  at  the  time  the  act  was 
passed  in  1899  at  the  rate  of  44  centavos  gold  for  every  peso  paper. 
This  fund  had  increased  to  30,000,000  pesos  by  1910  and  remained 
at  this  figure  until  1914.  The  outbreak  of  the  European  war  forced 
the  Government  to  pass  some  measures  to  meet  the  financial  situation 
created  by  the  war.  On  August  9,  1914,  the  directorate  of  the  Bank 
of  the  Argentine  Nation  was  authorized  to  convert  and  mobilize  the 
conversion  fund  as  it  deemed  expedient.  This  explains  why  in  the 
table  given  on  page  114,  the  figures  for  the  conversion  fund  are 
discontinued  after  1913.  However,  there  remained  in  this  fund 
from  1914  through  1918  the  sum  of  10,000,000  pesos  gold.  If  this 
amount  is  added  to  the  figures  given  in  the  table  for  the  total  amount 
of  gold  securing  the  paper  money  of  the  country,  the  ratio  of  gold  to 
paper  is  increased  about  2  or  3  per  cent  for  the  years  1914  to  1918, 
mclusive.*  The  other  20,000,000  pesos  were  taken  to  the  Office  of 
Conversion  and  exchanged  for  45,454,545.45  pesos  paper.^  Another 
law,  passed  on  August  9,  1914,  authorized  various  Argentine  lega- 
tions abroad  to  receive  gold  which  under  normal  conditions  would 
have  been  shipped  to  Argentina.  This  law  was  the  result  of  the 
action  taken  by  various  nations  prohibiting  the  shipment  of  gold. 
As  the  balance  of  trade  was  in  favor  of  Argentina  during  the  war,  con- 
siderable quantities  of  gold  came  into  the  hands  of  the  legations  at 
Stockholm,  London,  Washington,  Paris,  and  Eome.  The  law 
authorizing  the  legations  to  receive  this  gold  also  provided  that  the 
Treasury  Department  should  give  to  the  Office  of  Conversion  cer- 
tificates for  the  amount  of  gold  thus  deposited  in  the  legations,  and 
the  Office  of  Conversion  in  turn  was  empowered  to  issue  to  the  Bank 
of  the  Argentine  Nation  paper  money  equivalent  to  this  gold.  Thus 
back  of  the  paper  money  authorized  to  be  issued  by  this  law  are  the 
certificates  m  the  Office  of  Conversion  which  represent  the  gold 
deposited  with  the  Argentine  legations.  This  plan  permitted 
Argentine  creditors  to  receive  payments,  although  the  balance  of 
trade  remained  very  much  in  favor  of  Argentina,  and  the  foreign 
debtors  were  unable  to  ship  gold. 

1  Ratio  of  gold  to  paper:  1914,  66.3  per  cent;  1915,  72.6  per  cent;  1916,  73.3  per  cent;  1917,  73.3  per  cent; 
1918  (Nov.  30),  76.6  per  cent. 

2  See  Memoria  del  Departamento  de  Hacienda,  1916,  p.  118. 


114       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

The  table  following  shows  the  amount  of  paper  money  outstand- 
ing, its  value  in  gold  pesos  converted  at  the  rate  of  44  centavos  of  gold 
for  every  peso  of  paper,  and  the  amount  of  gold  which  secures  it.  It 
will  be  noted  that  although  the  ratio  of  gold  in  the  Office  of  Conver- 
sion to  the  gold  value  of  the  paper  money  in  circulation  decreased 
during  the  war,  nevertheless  if  the  gold  dfeposited  in  the  Argentine 
legations  be  added  the  ratio  on  November  30, 1918,  reached  its  highest 
point.  As  this  gold  will  be  eventually  deposited  in  the  Office  of  Con- 
version and  as  the  increased  issue  of  paper  money  was  based  on  this 
gold  deposited  in  the  legations,  it  shotdd  be  considered  as  part  of  the 
gold  security  for  the  paper  money  even  although  it  was  not  imme- 
diately available.  At  this  point  it  may  be  noted  that  on  August  12, 
1914,  the  export  of  gold  during  the  period  of  the  European  war  was 
prohibited,  and  on  ^ptember  30  a  law  was  passed  suspending  specie 
payments  by  the  Office  of  Conversion;  that  is,  delivery  of  gold  for 
paper  money  was  denied.  Thus,  so  far  as  the  holder  of  Argentine 
paper  "money  was  concerned,  the  gold  in  the  Office  of  Conversion  was 
no  more  available  to  him  during  the  war  than  was  the  gold  deposited 
with  the  legations.  The  so-called  conversion  fund  in  the  BanK  of  the 
Argentine  Nation  has  already  been  discussed.  Although  the  official 
report  of  the  Treasury  Department  ceased  to  include  any  sum  under 
this  heading  after  1913,  nevertheless  some  authorities  include  the 
10,000,000  gold  pesos  of  the  fund  which  stiU  remained  in  the 
bank  as  part  of  the  gold  back  of  the  paper  money  in  circulation. 


Relation  Existing  Between  the  Paper  Money  in  Circulation  and  the  Amount 

OF  Gold  Securing  It.^ 


Year, 
Dec.31. 

Paper 
money  in 
circulation. 

Gold 

equivalent 

of  this 

paper 

money. 

Gold  in 

Office  of 

Conversion. 

Relation 

of 
amoimt 
of  gold 
in  Office 
of  Con- 
version 
to  gold 
value  of 
paper 
money 
in  circu- 
lation. 

Conversion 
fund  in  the 

Bank  of 
the  Argen- 
tine Na- 
tion. 

Gold  held 
by  Argen- 
tine 
legations. 

Total  gold 

securing 

paper 

money. 

Relation 
of  total 

gold 
reserve 
to  paper 
money 
in  circu- 
lation. 

1899.... 

Paper  pesos. 
291,342,489 
295,165,927 
295,165,927 
296,055,093 
380,179,957 
407,681,X)73 
498,158,176 
526,747,832 
532,163,415 
581,272,168 
685,358,924 
715,982,757 
722,924,214 
799,803,535 
823,263,045 
803,280,275 
987,645,615 
1,013,098,518 
1,013,136,756 
1,154,456,055 

Gold  pesos. 
128,190,695 
129,873,008 
129,873,008 
130,264,241 
167,279,181 
179,379,672 
219,189,597 
231,769,046 
234,151,902 
255,759,754 
301,557,926 
315,032,413 
318,086,654 
315,913,555 
362,235,740 
353,443,321 
434,564,071 
445,763,348 
445,780,173 
507,960,664 

Gold  pesos. 
1,463 

Percent. 

Gold  pesos. 

Gold  pesos. 

Gold  pesos. 

Percent. 

1900 

1901.... 



1902 

2,843 
38,241,147 
50,341,639 
90,152,049 
102,731,014 
105,113,872 
126,721,724 
172,519,898 
185,994,386 
189,048,629 
222,875,531 
233,197,716 
221,710,205 
237,291,607 
260,320,952 
261,597,777 
279,465,449 

'1. 

28.1 
41,1 
44.3 
44.9 
49.5 
67.2 
59.2 
59.4 
63.3 
64.4 
62.7 
54.6 
58.2 
58.7 
55.0 

142,464 
488,627 
5,210,540 
11,710,545 
16,808,743 
19,762,406 
25,000,000 
28,500,000 
30,000,000 
30,000,000 
30,000,000 
3  30,000,000 

145,307 
38,729,774 
55,552,179 
101,862,594 
119,539,757 
124,876,278 
151,721,724 
201,019,898 
215.994,386 
219,048,629 
252,875,531 
263,197,716 
224,405,298 
305,636,048 
316,835,326 
316,852,151 
379,032,643 

(2) 

1903.... 

23.2 

1904.... 

31.0 

1905 

46.5 

1906.... 

51.6 

1907 

53.3 

1908.... 

69.3 

1909 

66.7 

1910.... 
1911.... 
1912 

68.6 
68.9 
71.9 

1913.... 

72.7 

1914 

2,695,093 
68,344,441 
56,514,374 
55,254,374 
99,567,193 

63.5 

1915.... 

70.3 

1916 

71.1 

1917  ... 

71.1 

1918  <... 

74.6 

^  Sources:  Memoria  del  Departamento  de  Hacienda,  1916,  pp.  131-133;  Memoria  del  Departamento  d® 
Hacienda,  1917,  p.  203;  Business  Conditions  in  Argentina,  Report  No.  143,  published  by  Ernesto  Tomquist  & 
Cla.  Dec.  30.  1918,  p.  14. 

2  Negligible. 

3  By  act  9479  of  Aug.  4, 1914,  the  Bank  of  the  Argentine  Nation  was  authorized  to  convert  and  mobilize 
this  conversion  fund  into  any  form  that  the  directorate  deemed  expedient. 

<  Nov.  30. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR.       115 

THE  BANKING  SITUATION. 

The  table  following  briefly  summarizes  the  conditions  of  the  prin- 
cipal banks  in  the  Republic  on  March  31,  1919.  In  this  list  two 
types  of  banks  are  included,  viz,  domestic  banks  and  foreign  banks. 

COMMERCIAL   DOMESTIC    BANKS. 

With  the  exception  of  the  Bank  of  the  Argentine  Nation,  this 
group  is  composed  of  banks  formed  solely  with  Argentine  private 
capital.  Among  the  most  important  of  such  banks  should  be  men- 
tioned the  following: 


Banks. 

Capitalization. 

Paper  pesos. 

U.S.  currency. 

Banco  Espaiiol , 

98,416,240 
62,500,000 
22,727,000 
31,816,000 

$41,826,902 

26,562,500 

9,658,975 

13,521,800 

Banco  de  la  Provincia  de  Buenos  Aires 

Banco  de  Italia  y  Rio  de  la  Plata... 

Banco  Frances  del  Rio  de  la  Plata 

There  are  other  domestic  banks  of  lesser  importance  in  Buenos  Aires 
with  branches  scattered  throughout  the  Republic,  and  also  many 
small  local  institutions.  These  Argentine  banks  specialize  in  han- 
dling the  finance  of  the  agricultural  regions  and  other  forms  of 
domestic  trade,  while  the  group  of  foreign  banks  finance  the  foreign 
business  of  the  country. 

Statement  Showing  the  Position  of  the  Banks  on  Mar.  31,  1919,  as  Published 
BY  the  Argentine  Government.^ 


Banks. 


Deposits. 


Gold  pesos.    Paper  pesos. 


Loans  and  discounts. 


Gold  pesos.  Paper  pesos. 


German  Transatlantic 

Anglo  South  American 

Argentine-Uruguayan 

British  of  South  America 

Comercial  del  Azul 

Italian  Commercial 

Spain  and  America 

Spanish  and  River  Plate 

French  and  River  Plate 

French  and  Italian 

Galicia  and  Buenos  Aires 

German  and  South  American 

Dutch  and  South  American 

Italian  and  River  Plate 

Italo-Belge 

London  and  Brazilian 

London  and  River  Plate 

Bank  of  the  Argentine  Nation  2 

New  Italian 

Argentine  Popular 

Province  of  Buenos  Aires  3 

National  City  Bank  of  New  York 

First  National  Bank  of  Boston , 

Five  banks  with  less  than  1,000,000  pesos  paper 
capital 


1,067,901 
338,652 


557,635 


788,631 


587, 763 

19,897 

39,858 

633 

339,400 

10,060 

952,033 

41,343 

172,057 

1,623,955 

3,058,492 

107,345 

158,908 


298,795 


Total. 


10,210,241 


14,950, 
29, 100, 

5, 174, 
29,341, 
14,094, 
13,010, 

1,017, 

111,680, 

19,271, 

27,405, 

17, 169, 

9,493, 
20,241, 
55,342, 
18,531, 

9,625, 
74,650, 
499,602, 
33,692, 
10,419, 
120, 753, 
25,551, 
22,812, 


829,632 
498,946 


216,479 

55,852 

245,652 

561 

285,075 

105,909 

98,850 

730,872 
258,861 
4,834 
6,886 
132, 151 
47, 198 


1,126,338 


10,443,638 
30,774,477 
4,681,065 
19,421,160 
13,022,586 
11,366,957 
835,623 

109,936,446 
13,667,646 
13,127,921 
17,568,273 
7,369,015 
31,595,033 
57, 723, 708 
11,273,349 
6,491,203 
37,532,111 

254,887,352 
27,810,088 
14,543,261 

100,672,017 
30,849,068 
18,516,466 

1,524,119 


184,062,123 


3,517,758 


845,632,604 


1  Source:  From  Review  of  the  River  Plate,  Apr.  25, 1919,  p.  1009,  as  published  by  the  Argentine  Gov- 
ernment. 

2  Including  judicial  deposits  of  87,427  gold  pesos  and  33,382,960  paper  pesos  and  cAmara  compensadora 
(clearing)  of  464,104  gold  pesos  and  68,907,141  paper  pesos. 

s  Including  judicial  deposits  of  1,684  gold  pesos  and  12,634,005  paper  pasos. 


116       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

Statement  Showing  the   Position   of  the  Banks  on  Mar.  31,  1919,  as  Pub- 
lished BY  the  Argentine  Government — Continued. 


Banks. 


Cash. 


Gold  pesos 


Paper  pesos. 


Capital  subscribed  or 
corresponding  to  Ar- 
gentine Republic. 


Gold  pesos.  Paper  pesos. 


German  Transatlantic 

Anglo  South  American 

Argentine-Uruguayan 

British  of  South  America 

Comercial  del  Azul 

Italian  Commercial 

Spain  and  America 

Spanish  and  River  Plate 

French  and  River  Plate 

French  and  Italian 

Galicia  and  Buenos  Aries 

German  and  South  American 

Dutch  and  South  American 

Italian  and  River  Plate 

Italo-Belge 

London  and  Brazilian 

London  and  River  Plate 

Bank  of  the  Argentine  Nation  i 

New  Italian 

Argentine  Popular 

Province  of  Buenos  Aires  « 

National  City  Bank  of  New  York 

First  National  Bank  of  Boston 

Five  banks  with  less  than  1,000,000  pesos  paper 
capital 


1,260,465 
123, 771 


2,833,348 


179,885 


1,635,972 

416,963 

47,061 

805 

291,740 

36,318 

1,255,969 

52,007 

571,865 

4, 815, 629 

34,808,959 

166, 222 

471,069 

2,905,646 

3,367 

363,050 


7,032,761 

10,269,187 

1.266,744 

7,602,108 

2,617,621 

3,841,691 

454,024 

25,486,125 

11,960,017 

14,650,413 

3,980,224 

2,895,344 

5,519,704 

10,391,287 

6,779,731 

2,434,116 

31,373,079 

137,729,196 

8,741,155 

2,583,510 

42,625,916 

5,612,934 

6,845,625 

1,343,507 


3,522,250 
'4"377,"246 


4,818,920 


13,509,875 
2,412,500 


510.000 

2,125,000 

575,833 

41,882,008 


1,668,487 
3,759,479 
9,650,000 
965,000 
1,223,803 
4,101,250 


7,313,621 


828,750 


1,000,126 


56,285,839 
2,125,000 
4,468,824 

26,562,500 
1,001,068 


2,049,575 


Total. 


52,240,111 


354,036,019     46,190,010 


150,443,833 


1  Including  judicial  deposits  of  87,427  gold  pesos  and  33,382,960  paper  pesos  and  c&mara  compensadora 
(clearing)  of  464, 104  gold  pesos  and  68,907,141  paper  pesos. 
» Including  judicial  deposits  of  1,684  gold  pesos  and  12,634,005  paper  pesos. 


BANK  OF  THE  ARGENTINE  NATION. 

Following  the  panic  of  1890,  when  the  two  semiofficial  banks  (the 
Provincial  Bank  and  the  National  Bank)  liquidated,  a  new  State  bank 
(the  Banco  de  la  Nacion  Argentina)  was  formed,  with  a  capitaliza- 
tion of  over  $21,000,000  (United  States  currency),  for  the  purpose  of 
transacting  the  business  of  the  Government.  On  December  31,  1917, 
the  capital  amounted  to  nearly  $55,000,000  with  a  reserve  fund  of 
over  $14,500,000.  Although  managed  independently  of  the  Govern- 
ment, it  carries  on  the  latter's  financing,  and  all  net  profits  must  go 
to  increase  the  capital.  It  can  not,  however,  loan  to  tne  Government 
in  excess  of  20  per  cent  of  the  capital  of  the  bank.  With  more  than 
150  branches  and  agencies  scattered  throughout  the  Repjublic,  its 
influence  is  tremendous.  On  account  of  its  Targe  dealings  in  foreign 
drafts  this  bank  controls  the  exchange  market  to  a  large  extent. 
The  following  statistics  show  the  growth  of  the  institution  since  1905: 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE  WAR.        117 

Bank  of  the  Argentine  Nation  as  op  Dec.  31,  1905-1917.^ 
[In  thousands  of  doUju-s,  United  States  currency.] 


Year. 

Deposits. 

Discounts, 

Cash. 

Capital. 

Reserve 

etc. 

Gold. 

Paper. 

fund  (gold). 

1905.           

75,100 
73,100 
86,600 
104,600 
147,300 
166, 100 
175,700 
203,300 
230,100 
257,300 
294,300 
321,200 
370,200 

69,800 
73,800 
92,900 
106,000 
127, 100 
153,500 
172,800 
178,300 
203,000 
211,100 
188,900 
187, 700 
226,700 

10,900 
9,000 
17,500 
21,900 
33,700 
35,300 
32,800 
36,500 
31,100 
27,600 
10,000 
14,400 
35.600 

21,800 
22,300 
23,400 
28,800 
48,900 
42,200 
42,400 
55,600 
76,500 
82,500 
153,900 
155,800 
125,700 

21,900 
22,800 
24,000 
46,800 
48,200 
49,800 
51,400 
53,100 
54,400 
54,400 
54,400 
54,400 
54,900 

2,600 

1906                                

3,500 

1907 

4,700 

1908                         

6,300 

1909 

7,900 

1910 

9,400 

1911 

11,100 

1912 

12,800 
14,100 

1913 

1914 

14,100 

1915 

14,100 

1916 

14,100 

1917.               

14,.')00 

»  Sources:  Memoria  del  Departamento  de  Hacienda.  1917;  Economla  y  Finanzas  de  la  Naci<5n  Argentina, 
Carlos  F.  Soares,  Buenos  Aires,  1916;  published  by  Talleres  Grdflcos  Rodriguez  Giles,  434,  Loria. 

Note.— The  Argentine  paper  peso  was  converted  to  United  States  currency  in  the  above  table  at  the 
rate  of  42.5cents  per  peso,  and  the  gold  peso  was  converted  at  the  rate  of  96.5  cents  per  peso, 

THE    FOREIGN   COMMERCIAL   BANKS    IN   ARGENTINA. 

The  trade  of  the  Republic  was  almost  entirely  with  foreign*  coun- 
tries before  the  war,  so  that  banking  has  assumed  an  international 
character  and  is  in  the  hands  of  foreigners  to  a  certain  extent,  because 
they  handle  so  much  of  the  foreign  business.  Each  of  the  banks  keeps 
in  touch  with  the  country  of  its  origin  and  attempts  to  gather  around 
it  a  clientele  of  its  own  nationality.  This  situation  has  produced  an 
independence  and  a  free  competition  which  has  extended  to  the  domes- 
tic banks  and  has  resulted  in  excellent  service,  but  also  in  a  tendency 
for  an  overextension  of  credit,  because  of  lack  of  any  cooperative 
control. 

The  most  important  of  the  foreign  banks  are  included  in  the  table 
on  page  115.  The  British  banks  are  especially  powerful,  due  to  their 
early  start,  to  their  great  export  and  import  business,  and  to  their 
management  of  the  huge  British  investments.  The  German  banks 
serve  principally  their  industrial  houses  and  also  German  exporters. 
The  French  Bank  of  the  Rio  de  la  Plata,  closely  connected  with  the 
Paris  market,  has  a  strong  position  in  Buenos  Aires  and  is  of  great 
assistance  to  French  trade.  The  Italian  banks  do  much  small 
business  for  their  many  Italian  clients.  The  Yokohama  Specie 
Bank  opened  a  branch  in  Buenos  Aires  on  Majr  6,  1918.  This  fact, 
together  with  its  increasing  merchant  marine,  indicates  that  Japan 
intends  to  take  an  important  part  in  the  commercial  transactions  of 
Argentina  through  the  advantage  of  cheap  labor. 

The  participation  of  banks  of  the  United  States  in  Argentine  banking 
operations  started  in  November,  1914,  the  National  City  Bank  of 
New  York  City  being  the  first  bank  of  the  United  States  to  avail 
itself  of  the  privilege  of  establishing  foreign  branches  granted  by  the 
Federal  reserve  act  of  1913.  Its  growth  has  been  rapid,  and  the 
table  shows  that  on  March  31,  1919,  this  bank  stood  tenth  among 
the  28  banks  listed,  as  regards  the  total  amount  of  deposits.     In  1915 


118      ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 

the  Argentine  loan  was  financed  through  the  medium  of  this  institu- 
tion, and  the  Industrial  Union  of  Argentina  conducted  its  notable 
negotiations  in  1916  with  the  United  States  through  the  same  medium. 
This  union  settled  a  large  number  of  claims  arising  from  misunder- 
standings with  our  exporters.  Other  banks  of  the  United  States 
which  have  entered  the  Argentine  field  are  the  First  National  Bank 
of  Boston  and  the  Guaranty  Trust  Co.,  of  New  York. 

REGULATIONS     REGARDING    ESTABLISHMENT     OF    FOREIGN     BRANCHES 
IN   ARGENTINA — LAW   OF   1913. 

The  amount  of  capital  to  be  devoted  to  the  operation  of  the  pro- 
posed branch  must  be  stated*  otherwise  the  wnole  capital  of  the 
parent  institution  is  taxed.  The  capital  of  the  branch  must  be  paid 
in  gold  into  the  Ofiice  of  Conversion  and  national  paper  currency  will 
be  issued.  This  may  be  loaned  out,  as  no  reserve  is  required  against 
capital;  but  65  per  cent  of  the  deposits  must  be  kept  in  reserve. 
These  banks  must  also  pay  annual  trading  licenses,  varying  from 
$7,000  to  $60,000.     Stamp  taxes  are  also  employed. 

INSTITUTIONS   CLOSELY  CONNECTED   WITH   COMMERCIAL  BANKING. 

SAVINGS   BANKS. 

In  September,  1914,  an  Argentine  Postal  Savings  Bank  (Caja 
Nacional  de  Ahorro  Postal)  was  created  under  national  guaranty 
and  started  operations  on  April  5,  1915.  One  year  later  there  were 
91,909  depositors,  and  by  October  18,  1917,  the  number  of  depositors 
had  increased  to  212,881. 

This  is  a  report  of  its  banking  operations: 

ARGENTINE   PoSTAL  SAVINGS   BaNK.^ 
[United  States  currency.] 


Periods. 

Deposits. 

Reimburse- 
ments. 

Balance. 

Apr.  5, 1915,  to  Dec.  31 .  1915 

$1,147,998 
2,847,412 
4,002,883 
1,660,834 

$226,830 
1,242,754 
2,441,982 
1,138,647 

$921,168 
1,604,658 
1, 560, 901 

1916........ 

1917 

1918  (first  5  months) 

522,187 

1  Source:  Business  Conditions  in  Argentina,  Tornquist  Report  No.  142,  p.  15. 

The  Government  controls  the  minimum  and  maximum  amounts 
that  may  be  deposited,  the  interest  rates,  etc.  This  is  the  first 
institution  whose  only  function  is  to  promote  saving.  During  the 
year  following  its  organization  185  post  offices  were  authorized  to 
receive  savings  deposits.     Sixty-five  of  these  were  in  Buenos  Aires. 

THE   NATIONAL  MORTGAGE  BANK. 


This  bank  (BancoHipotecaria  Nacional),  founded  in  1886,  has  been 
granted  the  right  to  make  loans  by  means  of  issues  of  cedulas,  which 
are  bonds  to  bearer.  These  bonds,  which  bear  interest  at  5  to  6  per 
cent,  are  given  to  persons  mortgaging  their  properties  to  the  bank. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR.       Il9 

and  such  bonds  find  a  ready  market  on  the  exchanges  both  at  home 
and  abroad.  While  European  capital,  especially  Belgian,  has  freely 
sought  this  type  of  investment,  that  of  North  America  has  been 
invested  only  lightly  and  within  the  past  two  years.  The  Argentina 
c^dula  is  a  desirable  form  of  investment  because  of  the  safeguards 
placed  by  the  Government  around  the  mortgage  business,  viz: 
(a)  The  Republic  does  not  recognize  a  secret  mortgage;  (h)  no  liens 
take  precedence  over  the  rights  of  the  mortgagee;  (c)  the  mortgage 
is  signed  before  a  notary  and  is  registered;  (d)  the  notary  must  de- 
mand a  certificate  stating  that  the  property  is  free  from  incimibrances. 
The  following  table  shows  the  amount  of  new  mortgages  and 
amortizations  made  in  the  city  of  Buenos  Aires  from  1913  through 
August,  1918.  The  figures  include  all  business  of  this  nature, 
whether  transacted  through  the  National  Mortgage  Bank  or  some 
other  institution.  From  1905  to  1914,  inclusive,  the  new  mortgages 
were  much  larger  in  amount  than  the  payments  made  on  old  mort- 
gages, but  the  war  has  brought  about  a  reversal  of  this  condition. 

Mortgage  Transactions — City  of  Buenos  Aires. ^ 
[United  States  currency.] 


Years. 

Amortizations. 

New  mortgages. 

1903          .                

$19,033,370 
18,128,673 
20,367,233 
33,818,015 
45,457,958 
50,192,160 
41,544,855 
41,684,595 
52,794,563 
56,754,543 
36,113,440 

$14,480,813 
20,469,105 
44,822,285 
57,892,055 
128,133,845 
111,342,563 
75,436,140 
37,708,168 
31,073,875 
29,517,568 
22,855,905 

1905 

1907...          .                                      

1909 

1911 

1913 

1914 

1915 

1916. 

1917. 

1918  8  mohths) 

1  Source:  Tomquist  &  Cia.,  Business  Conditions  in  Argentina,  Report  No.  142,  p.  38,  and  No.  143,  p.  24. 

In  1915  the  total  value  of  mortgages  upon  properties  in  Argentina 
was  calculated  at  $1,265,456,270,  which  was  estimated  as  being 
15  per  cent  of  the  total  value  of  private  property  in  Argentina.  The 
National  Mortgage  Bank  held  $247,541,800,  or  20  per  cent;  mort- 
gage companies  (mostly  British),  30  per  cent;  private  lenders,  43  per 
cent;  and  cooperative  msurance  societies,  7  per  cent. 

THE   CLEARING   HOUSE. 


Closely  connected  with  banking  operations  is  the  question  of 
facilitating  the  negotiation  of  commercial  paper.  An  institution  for 
this  purpose  was  established  in  1893  by  the  British  banking  interests. 
The  Bank  of  the  Argentine  Nation,  however,  did  not  participate  until 
1913,  when  the  clearing  house  was  transferred  within  the  walls  of  this 
institution  and  came  under  the  control  of  the  Argentine  nation. 
The  result  of  this  change  is  manifest  in  the  figures  which  follow. 
Note  the  effect  of  the  war  on  the  amount  of  clearings. 


120       ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR. 
Clearing-House  Operations  in  Buenos  Aires. ^ 


Clearings. 

Years. 

Paper  pesos. 

United  States 
currency. 

1910 

5,053,175,600 
5,475,319,700 
6,888,898,000 
17,652,874,600 
12,278,804,800 
13,502,433,000 
15,783,775,300 
19,043,286,400 
24,536,035,600 

$2,147,599,630 
2,327,010,873 
2,927,781,650 
7,502,471,705 
5,218,492,040 
5  738,534,025 
6,708,104,503 
8,093,396,720 

10,427,815,130 

1911 

1912 

1913 

1914 

1915 

1916 

1917..  .  . 

1918  (first  11  months) 

1  Sources:  Economla  y  Finanzas  de  la  Nacidn  Argentina,  p.  106;  Business  Conditions  in  Argentina,  Tom- 
quist  &  Cla.,  (Report  No.  142,  p.  15,  and  Report  No.  143,  p.  11). 

INSURANCE    COMPANIES. 

A  veiy  important  place  in  the  financial  interests  of  a  country  is 
held  by  its  insurance  companies.  During  the  first  week  of  February, 
1919,  Consul  General  Robertson,  of  Buenos  Aires,  stated  that  there 
was  a  pronounced  need  for  American  marine  and  fire  insurance  com- 
panies, due  to  the  constantly  growing  commercial  relations  between 
the  United  States  and  Argentina.^ 

In  1917  there  were  in  Argentina  26  British  insurance  companies, 
3  German,  3  American,  2  French,  1  Swiss,  and  1  Brazilian.  All 
these  concerns  have  their  main  offices  in  the  capital.  A  number 
of  cooperative  societies  and  58  or  more  local  companies  handle 
various  lines  of  insurance.  The  foreign  companies  pay  a  higher 
rate  of  taxation  on  premiums  than  the  domestic  companies,  and 
they  pay  also  a  suin  for  trading  licenses.  These  concerns  must 
deposit  a  sxma  approximating  $130,000  and  must  pay  a  tax  of  2  per 
cent  on  life  and  workmen's  compensation,  as  compared  with  the 
one-half  of  1  per  cent  paid  by  local  companies.  On  fire,  marine, 
and  accident  insurance  tne  rate  is  7  per  cent,  in  contrast  with  the  1.4 
per  cent  paid  by  local  companies. 


BANKING  REFORM. 

During  the  years  1902-1912  a  series  of  good  crops  and  a  large  influx 
of  immigrants  produced  prosperity  in  Argentina.  In  the  two  years 
that  followed,  adversity  overtook  this  Republic  on  account  of  poor 
crops,  the  curtailed  shipping  facilities,  and  because  the  financial 
organizations  were  not  able  to  stand  the  strain.  Lack  of  cooperation 
among  the  banks  had  resulted  in  overextension  of  credit  and  the 
monetary  system  was  unable  to  meet  the  demands  for  a  flexible  cir- 
culation. So  it  is  with  regret  that  this  item  is  recorded  (April, 
1918):  '^A  recent  attempt  to  establish  a  central  reserve  bank  and 
to  reform  the  currency  has  been  unsuccessful." 

The  suggestion  has  been  frequently  put  forth  that  the  Republic 
might  more  strongly  control  and  regulate  banking  operations  by  giv- 
ing a  commanding  position  to  the  Bank  of  the  Argentine  Nation. 

1  The  rules  and  regulations  governing  foreign  insurance  companies  may  be  obtained  by  addressing  the 
Ministerio  de  Hacienda,  Secci<5n  de  Seguros,  Casa  del  Gobierno,  Buenos  Aires. 


ECONOMIC    POSITION    OF   ARGENTINA    DURING    THE    WAR.      121 

This  bank  should  be  able  to  offer  rediscount  facilities  to  the  other 
institutions.  The  following  results  would  be  the  outgrowth  of  such 
a  procedure,  viz:  (a)  Stabilization  of  rates  of  interesj),  with  probable 
reduction;  (h)  better  tabulation  of  credit  information,  thereby  lessen- 
ing the  dangers  of  the  present  method;  and  (c)  placing  a  check  upon 
unrestrained  banking.  This  has  not  been  accomplished  because  the 
other  banks,  under  the  present  conditions,  regard  the  National  Bank 
as  a  competitor  and  have  no  desire  to  disclose  their  accounts  and 
information. 

Argentine  banking  has  weathered  the  storm  created  by  war  con- 
ditions, but  the  reforms  suggested  above  would  tend  to  prevent  the 
recurrence  of  excessive  booms  and  of  panics  such  as  occurred  in 
1913-14. 

THE  NATIONAL  DEBT. 

The  table  following  shows  the  total  debt  of  Argentina,  including  not 
only  the  debt  of  the  Federal  Government  but  also  the  debts  of  the 
Provinces  and  municipalities.  The  outstanding  c^dulas  of  the 
National  Mortgage  BanK  are  also  included,  as  they  are  guaranteed 
by  the  Federal  Government. 

National  Public  Debts.* 

[United  States  currency.] 


Years. 

Funded  debt. 

Floatingdebt. 

Total  debt. 

Interest  and 
otberclu^rges. 

1913 

$658,240,000 
682,150,000 
722,165,000 
707,707,000 

$74,158,000 
99,134,000 
76,672,000 
74,451,000 

$732,398,000 
781,284,000 
798,837,000 
782,158,000 

«  776, 100, 000 

$35,818,000 
36,737,000 
36,737,000 
41,265,000 

1914 

1915 

1916  .                                              

1917 

1  Source:  Fitch  Record  of  Government  Finances  for  1918,  p.  3. 

'  Figures  from  statement  in  message  of  the  President  to  the  legislature. 

The  per  capita  total  debt  is  $96  to  $97  (United  States  currency). 
The  following  table  ^  gives  the  figures  for  the  debt  of  the  Federal 
Government. 


Years. 

Gold  pesos. 

U.S.corrency.i 

1911      

526,540,088 
531,498,699 
544,820,000 
545,023,470 
537, 582, 830 
546,787,905 
595, 410, 400 

$508  111  185 

1912 

512,896,245 
525  751  300 

1913 

1914 

525  947  649 

1915 

518' 767^  431 
527,650,328 
574  571  036 

1916 

1917 

1  Conversion  factor:  1  peso=  $0,965 

The  Minister  of  Finance  submitted  a  report  in  which  he  stated 
that  the  floating  debt  of  the  Federal  Government  incurred  as  a  result 
of  the  war  amounted  approximately  to  $243,400,000  (United  States 
currency) . 

1  Source:  Revlsta  de  ECQnomla  y  Finanzas,  1918. 


122       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

Report  op  Minister  of  Finance,  August,  1918.  ^ 


Obligations. 


Amount,  U.  S. 
currency. 


Short-time  loans  outstanding  abroad  of  5,000,000  pesos  and  $25,000,000  United  States 
contracted  on  May  7,  1915,  in  London  and  New  York,  at  6  per  cent  interest,  to 
mature  May  15,  1920  2 

Loans  from  banks  and  other  establishments  in  Argentina,  including  the  Bank  of  the 
Argentine  Nation 

Due  Bank  of  the  Argentine  Nation 

Advance  from  Bank  of  the  Argentine  Nation  (as  of  Aug.  5) 

Purchase  of  mole  at  Puerto  Militar,  treasury  bills  (interest  included)  maturing  on  Feb.  15, 
1920 

Treasury  bills  (as  of  Aug.  6) 

Floating  debt  from  1917  and  previous  years  (as  of  Jime  30  last) 

Supplementary  credits  (estimated) 

Total 


$49,367,614 

130,453,750 
30,599,844 
10,656,011 

4,234,234 

7, 697, 769 
8, 245, 000 
2, 125, 000 


243,379,222 


1  Source:  Commerce  Eeports,  Oct.  16,  1918. 

*  For  the  past  30  years  Baring  Bros.^  of  London,  have  acted  as  agents  in  floating  Argentine  loans  in 
England.  The  British  have  invested  m  these  quite  freely.  Since  1914  the  National  City  Bank  of  New 
York  City  and  the  First  National  Bank  of  Boston  have  made  loans  to  Argentina. 

A  study  of  the  debt  of  the  Federal  Government  shows  that  there 
has  been  a  tendency  for  the  debt  to  increase.  There  are  only  three 
possible  basic  reasons  for  this:  (1)  Kapid  increases  in  expenditures, 
or  (2)  decreases  in  revenues,  or  (3)  a  combination  of  these  two.  To 
bring  out  clearly  which  of  these  is  to  be  taken  as  the  reason  for  the 
increase  in  the  debt  which  has  occurred  in  late  years,  the  following 
table  of  expenditures  and  revenues  is  given : 

Revenues  and  Expenditures,  1912-1918.* 


Year. 

Revenue 

(United  States 

currency). 

Expenditures 

(Umted  States 

currency). 

1912 

$143,009,767 
148,509,481 
106,319,697 
106,693,806 
109,876,701 
107,360,143 
2  164,082,493 
■ 

$171,832,028 
171,527,658 
178,415,581 
145,848,766 
166,839,874 
168,406,894 
168,878,713 

1913.     .. 

1914 

1915... 

1916 

1917 

1918. 

1  Source:  The  South  American  Journal,  July  20, 1918.    From  the  Argentine  presidential  message,  May  16 
1918. 

2  Bitimates.    Note  that  the  estimated  revenue  is  larger  than  in  the  preceding  year. 

The  changes  in  the  expenditure  totals  show  no  marked  variance, 
but  there  has  been  a  slight  decrease,  due  to  fewer  extravagant  outlays 
common  in  former  years,  when  lavish  expenditures  were  made 
upon  unproductive  projects,  such  as  railroad  extensions  and  ports 
on  the  Atlantic  which  do  not  benefit  the  present  generation.  It 
is  also  true  that  expenditures  for  administrative  purposes  were 
reduced  approximately  $12,000,000  United  States  currency  in  1918, 
but  the  expense  of  jnaintaining  the  public  debt  increased.  The 
growth  of  national  indebtedness,  therefore,  was  due  to  decreased 
revenue.  The  decrease  in  revenue  was  caused  by  the  decline  in  the 
receipts  from  customs. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR.        123 

SOURCES  OF  REVENUE. 

The  following  table,  which  gives  the  figures  of  the  1918  budget  for 
the  principal  sources  of  revenue,  shows  clearly  the  predominance  of 
the  import  duties  as  a  source  of  revenue : 

Sources  of  Revenue.^ 


Items. 


Import  duties... 
Export  duties... 

Tobacco 

Stamps 

Port  charges,  etc 
Wines 


Paper  pesos. 


124,050,000 
50,000,000 
30,000,000 
20,000,000 
14,300,000 
12,200,000 


United  States 
currency.  2 


$52, 721, 250 
21,250,000 
12, 750, 000 
8,500,000 
6,077,500 
5,185,000 


1  Source:  Standard  Daily  Trade  Service,  August,  1917.       2  Conversion  factor:  1  paper  peso=$0.425. 

Duties  on  imports  have  always  supplied  a  high  percentage  of  Gov- 
ernment revenue.  The  revenue  from  this  source  has  averaged  about 
63  per  cent  of  the  total  national  income.  The  following  figures 
show  the  loss  from  this  source  sustained  during^  the  war,  due  to  the 
shortage  of  tonnage  and  the  commercial  regulations  of  the  Allies  and 
the  United  States:* 

* 
Revenue  Derived  from  Duties  Levied  on  Imports. 


Years. 

Gold  pesos. 

United  States 
currency.! 

1911 

77,862,358 
82,889,737 
87,633,788 
52,079,3e0 
41,754,171 
4:'i,153,496 
42,520,751 

$75,137,175 
79,988,596 
84,566,605 
50  256  582 

1912 

1913 

1914 

1915. 

40,292,775 
44,538,124 
41,032,525 

1916 

1917 

1  Conversion  factor:  1  peso=$0.965. 


The  Argentine  Government  has  recognized  that  the  old  method  of 
raising  revenue  is  not  suited  to  securing  sufiicient  funds  to  cover 
necessary  expenditures  and  is  considering  new  methods  of  acquiring 
revenue,  which  are  discussed  in  the  following  section. 


NEW    SOURCES    OF   REVENUE. 


In  a  speech  delivered  on  August  31,  1918,  President  Irigoyen  sum- 
marized the  proposed  new  sources  of  revenue  as  follows : 

(1)  A  reasonable  increase  in  the  customs  appraisements  of  the  import  tariff  list; 

(2)  Modification  of  the  basis  for  the  collection  of  the  export  duties; 

(3)  An  increase  of  50  per  cent  in  the  present  statistical  tax; 

(4)  An  equitable  increase  in  port  duties; 

(5)  Modifications  of  the  inland  revenue  taxes  on  tobacco,  cards,  etc., 

(6)  Increased  earnings  of  the  national  transport  fleet; 

(7)  An  increase  of  the  Argentine  consular  fees;  and 

(8)  The  establishment  of  a  national  income  tax. 


124       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 
TAXES    ON   IMPORTS    AND   EXPORTS. 

The  higher  appraisement  on  imported  commodities  was  deemed 
advisable  because  the  former  classification  was  determined  in  1906, 
when  values  were  lower.  The  Government  in  the  last  quarter  of 
1918  increased  the  appraised  value  20  per  cent.  This  tends  to 
produce  20  per  cent  additional  revenue  from  such  goods  as  bear  an 
ad  valorem  tax.  Opposition  has  been  expressed  on  the  grounds 
that  such  a  measure  tends  to  augment  the  high  cost  of  living.  Those 
in  favor  of  the  new  regulation  state  that  most  of  the  imported  arti- 
cles of  prime  necessity  have  a  specific  tax  and  are,  therefore,  not 
affected  by  the  ad  valorem  duty.  This  answer  is  only  partly  true, 
inasmuch  as  ad  valorem  duties  are  levied  upon  imports  of  wearing 
apparel,  textiles,  hardware,  dry  goods,  drugs,  chemicals,  electrical 
supplies,  etc. 

One  of  the  most  effective  methods  of  increasing  the  revenue  lies 
in  the  restoration  of  heavier  duties  on  exported  commodities.  In 
1912  the  money  received  from  this  source  was  1,962  gold  pesos. 
The  estimate  for  1918  was  28,908,000.  The  law  as  passed  in  Janu- 
ary, 1918,  provided  that  certain  commodities  have  their  basic  prices 
fixed  monthly  by  an  authorized  committee,  and  if  sold  above  this 
appraised  value  the  increase  is  fixed  in  this  manner,  viz,  15  per  cent 
tax  on  exported  animal  products  and  12  per  cent  on  agricultural 
goods. 

INCOME   TAX. 

In  the  estimate  of  revenue  for  1919  an  entirely  new  source  was 
proposed,  viz,  the  income  tax.  It  was  expected  to  yield  during 
that  year  a  revenue  of  30,000,000  pesos  paper  ($13,425,000  United 
States  currency).  The  fundamental  principle  of  the  tax  is  summed 
up  in  this  clause: 

Every  person  or  incorporated  body  domiciled  in  the  territory  of  the  Republic  shall 
pay  annually  a  fixed  tax  of  2  per  cent  upon  his  or  her  net  income  derived  from  the 
country  or  from  abroad  during  the  preceding  year  when  such  income  is  in  excess  of 
1,500  pesos  paper  ($671  United  States  currency)  per  annum. 

MISCELLANEOUS    SOURCES. 

The  Argentinians  have  attempted  to  increase  the  revenue  by 
various  other  expedients.  Internal  taxes  have  been  increased, 
especially  on  wines,  tobacco,  playing  cards,  etc.  Shipping  interests 
find  the  charges  for  using  port  facilities  more  expensive.  Thus 
a  vessel  of  7,000  tons  net  register  from  foreign  ports  remaining 
in  port  six  days  formerly  paid  about  $2,040  shipping  dues;  to-day 
the  cost  is  $4,080.  In  the  same  way  the  charges  for  vessels  engaged 
in  coast  trade  have  increased,  but  not  to  the  same  degree.  The  free 
ports,  which  were  so  inducive  to  the  growth  of  southern  Argentina, 
have  been  abolished  and  customhouses  established.  All  phases  of 
financial  life  are  taxed,  and  one  of  the  newer  forms  is  a  5  per  cent 
tax  on  interest  money  received  by  holders  of  mortgages.  Even 
pleasures  are  affected,  and,  besides  the  returns  from  the  national 
lottery,  attendance  at  the  race  track  and  participation  in  the  betting 
have  both  become  fruitful  sources  of  State  income. 


ECONOMIC  POSITION   OF   ARGENTINA  DURING  THE  WAR.       125 

The  great  need  for  more  revenue  will  probably  result  in  benefiting 
Argentina.  Economies  will  be  instituted,  an  appreciative  study  of 
the  national  resources  will  be  made,  and  the  result  promises  an  effi- 
cient exploitation  of  these  assets  on  the  basis  of  conservation. 

FOREIGN  INVESTMENTS. 

The  value  of  foreign  investments  in  adjusting  unbalanced  trade 
is  described  in  the  following  section,  where  the  heavy  pre-war  im- 
ports of  England  and  Germany  into  Argentina  are  given.  England, 
the  heaviest  investor,  is  especially  interested  in  railway  development; 
Germany  in  electrical  power  and  lighting  plants;  the  investments 
on  the  part  of  the  United  States  are  very  small.  The  table  below 
shows  how  the  investments  affected  the  imports  from  these  countries. 

TYPES    OF   FOREIGN    INVESTMENTS. 

One  of  the  Argentine  statisticians  in  May,  1918,  gave  the  follow- 
ing table  to  show  the  extent  and  distribution  of  foreign  capital 
invested  in  his  country. 

Foreign  Investments,  Extent  and  Distribution. 


Types  of  investment. 


Capital  invested. 

Gold  pesos. 

U.  S,  currency 

657,303,460 

$634,297,839 

1,344,326,465 

1,297,275,039 

51,981,022 

50,074,836 

22,163,909 

21,388,172 

109,496,149 

105,663,784 

40,916,439 

39,484,364 

78,373,018 

75,629,962 

79,681,618 

76,892,761 

500,015,962 

482,515,403 

3,886,464 

3,750,438 

507,760,000 

489,988,400 

21,340,000 

20,593,100 

465,169,244 

448,888,321 

3,882,323,750 

3,746,442,419 

Various  Argentine  loans  and  issues 

Railways 

Banks 

Ports 

Tramways 

Freezing  establishments 

Gas,  electricity,  water,  and  drainage  companies, 

Land  and  rural  property  companies 

Mortgages 

Insurance 

Industrial  establishments 

Telephone  and  radio-telegraphic  companies 

Commerce 

Total 


Although  it  is  difficult  to  ascertain  the  capital  invested  by  the  differ- 
ent nations,  the  authority  quoted  above  believes  that  the  British  in- 
vestments amount  to  a  sum  between  $2,000,000,000  and  S2,500,000,- 
000,  or  over  50  per  cent  of  the  total  invested.  The  French-invested 
capital  in  1913  was  estimated  at  $400,000,000;  the  German  capital 
at  $250,000,000.    ItaUans  and  Belgians  are  also  heavy  investors. 


THE  RAILWAYS. 

More  than  twice  as  much  foreign  capital  is  invested  in  the  Argen- 
tine railways  as  in  any  other  industry.  The  importance  of  invest- 
ment in  this  branch  well  illustrates  the  importance  of  all  investments 
in  countries  where  it  is  desired  to  build  up  trade.  The  heaviest 
investors  are  the  British.  The  money  invested  seldom  leaves  Eng- 
land, because  the  initial  loan  ^oes  to  pay  British  makers  of  railway 
supplies  for  the  material  used  in  building  and  later  maintaining  the 


126       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

railroads.  In  the  case  of  Argentina  the  absolute  inability  to  supply 
fuel  and  other  materials  for  railway  maintenance  makes  necessary 
a  continued  export  trade  in  these  commodities  from  the  investing 
countries.  The  majority  of  these  countries  buy  less  than  they  seU 
Argentina.  A  balance  is  due  them  each  year.  The  dividends  and 
interest  pay  this  balance  and  thus  facilitate  exchange  relations.  In 
1913  the  following  balances  were  due  the  countries  named: 

Great  Britain $10, 500, 000 

Germany 13,  500,  000 

United  States 40, 000,  000 

France 1, 000,  000 

Italy 15, 000,  000 

The  United  States,  with  the  largest  balance,  has  small  returns 
from  investments. 

The  natural  resources  of  Argentina  make  certain  its  commercial 
development,  and  this  growth  constantly  demands  increased  and 
improved  transportation  facilities.  To-day  the  capital  invested  in 
the  privately  owned  lines  is  more  than  $1,200,000,000.  Great 
Britain  controls  about  $1,000,000,000  of  this  large  investment. 
France,  with  three  or  four  railways  in  the  northern  Provinces,  has 
the  next  largest  interests.  Before  the  war  the  shares  of  the  larger 
lines  were  far  above  par  and  the  dividends  on  the  ordinary  stock 
averaged  7  per  cent.  The  holdings  of  the  other  nations  in  this  line 
of  investment  are  small. 

GOVERNMENT  LOANS  AND  ISSUES. 

At  the  beginning  of  1916  the  Government  loans  amounted  to 
$350,000,000  out  of  an  original  sum  of  $430,000,000.  These  loans 
have  been  contracted  to  defray  expenses  in  former  Argentine  wars, 
to  assist  in  the  building  of  railroads,  to  further  provincial  and  munici- 
pal improvements,  and  to  pay  debts  due  cities  and  banks.  The 
bonds  find  great  favor  abroad,  especially  in  Europe,  where  the  quota- 
tions normally  are  at  a  premium.  In  the  period  of  1911-1914, 
issues  at  5  per  cent  sold  at  104  to  106.  Great  Britain  holds  a  large 
share  of  these  bonds,  most  of  which  were  floated  by  the  great  English 
banking  house  of  Baring  Bros.  &  Co.  Recent  short-term  issues  have 
been  financed  in  the  United  States  and  taken  up  eagerly.  The 
United  States  is  probably  the  second  largest  investor  in  Government 
issues  to-day.  The  Provinces  and  cities  have  also  borrowed,  and 
their  loans  are  in  British  and  German  hands. 

BANKS  AND  BANKING. 

In  this  field  also  the  British  are  great  investors.  Not  only  does 
the  control  of  banking  institutions  make  possible  more  reliable 
credit  information  and  offer  opportunities  to  facilitate  exchange, 
but  this  type  of  investment  is  secure  and  profitable.  The  three  large 
British  banks  paid  during  the  three  pre-war  years  dividends  amount- 
ing to  22,  20,  and  12  per  cent,  respectively.  The  shares  sold  at  185, 
248,  and  lOOf .  The  majority  of  the  European  nations  doing  a  large 
volume  of  business  with  Argentina  have  interests  in  one  or  more 
of  the  banks.  Since  the  passing  of  the  Federal  reserve  act  in  Decem- 
ber, 1913,  the  United  States  has  established  branch  banks  in  Buenos 


ECOITOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR.        127 

Aires.  The  National  City  Bank  and  the  Guaranty  Trust  Co.,  of 
New  York  City,  and  the  First  National  Bank  of  Boston,  have  estab- 
lished such  connections. 

PUBLIC  UTILITIES. 

Europe  has  invested  in  electric  light  and  power  companies,  gas 
companies,  tramways,  telephone  companies,  water  supply,  and 
sanitary  works.  As  in  the  case  of  the  railways,  supplies  for  installa- 
tion and  maintenance  come  from  the  investing  countries.  The 
improved  conditions  attract  people  and  increase  trade,  which  reacts 
on  the  business  done  with  the  countries  interested  in  the  enterprises. 

Electricity  is  used  more  extensively  than  gas  for  lighting  and 
heating.  A  powerful  German-owned  company  controls  the  electrical 
supply  in  Buenos  Aires,  Montevideo,  and  Valparaiso.  In  Buenos 
Aires  the  Italian  company  (Italo- Argentine  Electric  Co.)  competed 
with  the  Germans  before  the  war,  and  lately  has  gained  great  strength. 
Before  the  war  the  German  company  averaged  dividends  of  10  per 
cent.  The  limited  coal  supply  of  the  last  four  years  has  adversely 
affected  these  concerns.  In  the  smaller  cities  are  found  British, 
French,  and  Belgian  companies. 

The  tramways  and  telephone  companies  have  much  Argentine 
capital  invested,  while  the  sanitary  works  and  water  supplies  of  the 
municipalities  have  been  assisted  by  British  capital  especially. 

INVESTMENTS  IN  THE  INDUSTRIES. 

Investments  in  mining  companies,  especially  petroleum,  are  more 
or  less  in  the  speculative  stage,  while  investments  in  agricultural 
and  pastoral  industries  consume  Argentine  capital  chiefly. 

The  war  hastened  a  plan,  already  well  started,  to  interest  American 
capital  in  the  meat-packing  industry  in  Argentina.  As  early  as  1913 
the  Argentine  and  British  controlled  companies  appealed  to  the  Gov- 
ernment to  limit  the  output  of  the  American  plants.  This  is  an  indi- 
cation of  the  success  of  Americans  in  this  field,  which  offers  one  of  the 
best  opportunities  for  American  capital. 

EFFECT  OF  WAR  ON  THE  FOREIGN  INVESTMENTS. 

The  Allies  have  large  holdings  in  Argentina.  In  spite  of  the  need 
to  pay  debts,  especially  to  the  United  States,  it  is  not  likely  that  many 
of  these  lucrative  and  secure  investments  were  transferred.  The 
German  capital  is  interested  chiefly  in  banks  and  in  the  German 
Transatlantic  Electric  Co.,  with  its  branches  in  Montevideo  and 
Valparaiso,  probably  the  largest  overseas  electrical  plant  of  any 
nation.  Its  value  as  a  purchaser  of  German  electrical  goods  is  tre- 
mendous. Its  investment  in  electrical  e(iuipment  in  Buenos  Aires 
alone  is  estimated  at  $10,000,000.  Negotiations  were  started  to  buy 
these  plants  and  equipment,  but  were  halted  because  of  the  fear  that 
such  a  transfer  would  make  these  properties  unavailable  for  indem- 
nity piu-poses. 

During  the  last  few  years  the  United  States  has  established  branch 
banks,  floated  several  Government  loans,  and  has  taken  a  prominent 
place  in  the  meat-packing  industry.  The  surplus  capital  in  the 
124236°— 20 9 


128       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

United  States  has  been  started  toward  Argentina,  and  the  next  few 
years  will  probably  witness  increased  holdings. 

(Special  reference :  Investments  in  Latin  America,  Special  Agents 
Series  No.  169,  Bureau  of  Foreign  and  Domestic  Commerce.) 

THE  BALANCE  OF  TRADE. 

Ai^entina  for  many  years  has  shown  a  favorable  balance  of  trade, 
with  one  exception.  In  1911,  a  bad  crop  year,  the  balance  against 
it  was  $60,508,000.  With  the  beginning  of  the  war,  imports  were 
curtailed  and  exports  were  increased.  In  1913  the  favorable  balance 
was  $22,126,000,  while  in  1915  the  maximum  of  $267,007,000  was 
reached.  In  1916  and  1917  the  balances  were  not  so  large,  although 
great  in  comparison  with  the  pre-war  balance.  In  1918  for  the  first 
nine  months  the  balance  in  favor  of  Argentina  was  $245,720,000, 
which  indicates  that  1918  was  probably  the  climax.  The  quantity 
imported  in  1918  was  also  the  smallest,  due  to  lack  of  tonnage,  while 
the  exports  reached  the  high-water  mark  both  in  quantity  and  value. 
Graph  No.  16,  on  page  87,  and  the  following  table  show  Argentina's 
balance  of  trade  since  1910: 

Abgentina's  Balance  of  Tbade.* 
[United  States  dollars;  000  omitted.] 


Years. 

Total  im- 
ports. 

Total  ex- 
ports. 

Balance  in 
favor  (+)  or 
against  (— ) 

Argentina. 

1910 

366,075 
390,844 
431,223 
478,859 
311,241 
294,796 
353,316 
367,010 
353,057 

375,454 
330,336 
481,090 
500,986 
389,022 
561,803 
552,945 
530,914 
598,774 

+    9,379 
—  60,508 

1911 

1912 

+  49,867 
+  22,127 
+  77,781 
+267,007 
+199,629 
+163,904 

1913 

1914 

1915 

1916         .                 

1917 

1918  (first  9  months) 

+245, 717 

1  Source:  El  Comercio  Exterior  Argentino,  Boletin  No.  177, 1918.* 

*Real  values.  The  following  quotation  from  the  Fitch  Record  of  Government  Finances  for  1918  explains 
the  discrepancies  in  ofllcial  figures  on  Argentina's  trade:  ' '  Corrected  figures  ( or  real  values) ,  showing  actual 
f.o.b.  and  c.i.f.  values,  do  not  correspond  with  the  official  figures  which  are  usually  given  (in  detailed  tables) 
on  Argentine  trade.  In  Argentine  official  returns  export  figures  are  based  on  the  current  market  values  of 
the  merchandise,  but  are  only  approximately  correct .  Import  figures,  however,  have  no  relation  to  current 
market  values.  They  are  based  on  the  officially  fixed  valuation  for  customs  in  the  tariff  of  1903,with  slight 
subsequent  modificatons."    This  situation  is  explained  more  fuUy  in  the  introduction  to  this  publication. 

Argentina's  Balance  of  Trade  with  Selected  Countries.^ 
[United  States  dollars;  000  omitted.] 


United  States. 

United  Kingdom. 

Germany. 

Years. 

Imports 
from. 

Exports 

Balance 
in  favor 
(+)or 
agamst 
(-)Ar- 
gentma. 

Imports 
from. 

Exports 

Balance 
in  favor 
(+)or 
against 
(-)  Ar- 
gentina. 

Imports 
from. 

Exports 

Balance, 
in  favor 
(+).or 

agamst 
(-)  Ar- 
gentina. 

1910 

1911 

1912 

1913 

1914 

1915 

1916 

1917 

50,368 
55,775 
66,243 
70,456 
41,984 
72,943 
103,243 
133,251 

25,511 
24,715 
32,632 
23,728 
47,736 
90,426 
115,539 
155,625 

-24,855 
-31,058 
-33,610 
-46,728 
+  5,751 
+17,481 
+12,295 
+22,373 

113,781 
115,737 
132,951 
148,661 
105,835 
88,040 
99,590 
80,079 

81,395 
93,412 
122,273 
124,750 
113,754 
166,042 
162,642 
155,217 

-32,385 
-22,325 
-10,673 
-23,910 
+  7,917 
+78,001 
+63,050 
+75,136 

63,589 

70, 154 

71,637 

80,995 

45,774 

7,342 

569 

283 

45,390 
43,809 
54,397 
60,023 
34,222 

-18,198 
-26,346 
-17,239 
-20,971 
-11,552 
—  7,342 

—      569 

-      283 

1  Source:  Intercambio  Econdmico  de  la  Repiiblica,  1910-1917;  El  Comercio  Exterior  Argentino  en  1916  y 
1917,BoletinNo.  176. 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE   WAR.        129 
Abgentina's  Balance  of  Trade  with  Selected  Countries — Continued. 


Spain. 

Brazil. 

Years. 

• 

Imports 
from. 

Exports 

Balance 
in  favor 

gentina. 

Imports 
from. 

Exports 

Balance 
in  favor 
(+)or 
against 
(-)  Ar- 
gentina. 

1910                       

11,349 
12,016 
13,363 
14,071 
9,846 
14,727 
21,900 
26,529 

2,891 
2,215 
3,609 
4,992 
2,677 
7,181 
8)717 
8,814 

-  8,458 

-  9,801 

-  9,754 

-  9,077 

-  7,168 

-  7  539 

-  1,318 
-17,715 

9,469 
9,014 
10,696 
10,516 
10,632 
13,483 
19,333 
36,649 

17,672 
18, 179 
22,814 
25, 193 
17,491 
22,047 
24,940 
22,021 

+  8,202 
+  9,164 
+12,118 
+14,676 
+  6,859 
+  8,562 
+  5,595 
-14,528 

1911      

1912             

1913 

1914            

1915                              

1916            

1917                         

Uruguay. 

Japan. 

Years. 

Imports 
from. 

Exports 

Balance 
in  favor 
(+)or 
against 
(-)  Ar- 
gentina. 

Imports 
from. 

Exports 

Balance 
in  favor 
(+)or 
against 
(-)  Ar- 
gentina. 

1910  

2,352 
3,269 
2,796 
3,630 
3,355 
2,441 
3,995 
6,732 

1,544 
2,380 
4,743 
6,529 
5,253 
8,008 
6,604 
10,313 

-  807 

-  888 
+1,952 
+2,898 
+1,897 
+5,567 
+2,608 
+3,580 

793 

652 

867 

985 

656 

1,061 

1,921 

3,202 

79g 

1911               

—    5'>2 

1912                                    

—    867 

1913     

17 

—    967 

1914                                             

—    556 

1915 

—1,060 

1916                                

-1,921 
—1,165 

1917 

2,036 

Note.— There  is  a  slight  per  cent  of  error  in  the  above  figures,  owing  to  the  conversion  of  the  gold  pesos 
"With  the  thousands  omitted  and  the  use  of  $0,965  as  the  conversion  unit. 

From  the  foregoing  table  it  may  be  seen  that  Argentina's  balance 
of  trade  with  the  United  States  was  unfavorable  to  Argentina  imtil 
1914.  In  that  year  the  balance  changed  and  increased  until  in  1917 
Argentina  was  exporting  an  excess  of  $22,373,000  worth  of  goods  to 
the  United  States.  This  was  largely  due  to  an  increase  in  the  price  of 
commodities  rather  than  to  an  increased  quantity.  The  effect  upon 
the  exchange  rate  has  also  been  unfavorable  to  the  United  States.  It 
is  probable  that  these  conditions  will  adjust  themselves,  now  that 
shipping  conditions  are  better,  and  especially  since  the  United  States 
has  removed  the  restriction  on  the  exportation  of  gold. 

Argentina's  Trade  With  the  United  States. 
[United  States  dollars.] 


Years. 

Per  cent  of 
total  im- 
ports from 
the  United 
States. 

Per  cent  of 
total  ex- 
ports to 

the  United 
States. 

Balance  of  trade 
in  favor  of  (+)  or 
against  (—)  Ar- 
gentina. 

Total  balance  of 

trade  in  favor  of 

Argentina. 

1913 

14.9 
13.5 
16.1 
29.4 
36.3 

4.7 
12.3 
16.1 
20.9 
29.3 

-46,728,000 
+  5,752,000 
+17,482,000 
+  12,296,000 
+22,374,000 

+  22,127,000 
+  77,781,000 
+267,007,000 
+  199,629,000 
+163,904,000 

1914 

1915                                         

1916 : . 

1917 

130       ECONOMIC  POSITION   OF  AKGENTINA  DURING  THE  WAR. 

The  same  conditions  showed  in  Argentina's  trade  with  the  United 
Kingdom.  The  value  of  imports  from  the  United  Kingdom  de- 
creased. In  connection  with  a  period  of  rising  prices,  this  decrease 
m.ust  have  meant  a  very  great  decrease  in  the  quantity  imported. 
With  the  increase  in  value  of  exports,  the  balance  of  trade  in  favor  of 
Argentina  was  greater  than  that  with  the  United  States. 

Exports  to  Germany  ceased  in  1914,  and  for  the  entire  period  of 
the  war  the  balance  oi  trade  against  Argentina  showed  a  decreasing 
amount,  until  in  1917  it  had  become  very  small.  With  the  other 
countries  shown  in  the  table  the  outstanding  features  in  the  trade  are : 
An  increase  in  the  values  of  both  imports  from  and  exports  to  Spain, 
with  the  balance  increasing  in  favor  of  Spain  in  1916  and  1917 ;  a  favor- 
able balance  of  trade  with  Brazil  through  1916,  although  the  value 
tended  to  become  less  after  1913,  and  in  1917  an  unfavorable  balance  of 
quite  large  value  through  a  large  increase  in  the  values  of  imports  from 
Brazil ;  reciprocal  trade  with  Uruguay  increased  during  the  period  with 
the  balance  of  trade  in  favor  of  Argentina;  the  value  of  imports  from 
Japan  increased  steadily,  while  Argentina  sent  no  goods,  with  the 
exception  of  a  small  quantity  in  1913,  until  in  1917  it  sent  $2,036,000 
worth,  thereby  lessening  the  imfavorable  balance  against  it  39  per 
cent  from  that  in  1916. 

The  main  problems  in  connection  with  the  balance  of  trade  in  Argen- 
tina are  those  dealing  with  the  difference  in  the  value  of  exports  and 
imports  and  with  the  adjustment  of  exchange  rates. 

With  the  exception  of  two  or  three  lean  seasons,  the  past  20  years 
have  witnessed  a  substantial  increase  in  the  balance  of  trade  in  favor 
of  the  Republic.  The  following  official  statement  explains  the  situa- 
tion in  the  year  1916 : 

Balance  of  Trade,  1916. 

the  world  owed  argentina. 

Gold  pesos. 

Value  of  exports 572.999,522 

Purchase  of  bonds,  mortgages,  etc 52, 1 70,  000 

Expenses  of  foreigners  in  Argentina 5, 000, 000 

Total 630,169,522 

ARGENTINA    OWED  THE   WORLD. 

Gold  pesos. 

Value  of  imports 366,130,571 

Foreign  loans --- 10,000,000 

Interest  on  national,  provincial,  and  municipal  loans 51, 117,  228 

Interest  and  dividends  from  railways 46, 195,  908 

Interest  from  mortgages 37,  947,  024 

Interest  from  other  investments 22,  966,  389 

Transferring  of  immigrant  earnings 33, 000,  000 

Expenses  of  Argentinians  abroad 5, 000, 000 

Total 572,357,120 

Deducting  the  second  total  from  the  first,  we  find  that  the  world 
owed  Argentina  57,812,402  gold  pesos  net.  In  this  particular  year 
the  debt  was  paid  by  net  imports  of  gold  to  the  value  of  25,516,345 
pesos,  and  the  balance  (32,296,057  gold  pesos)  was  devoted  to  dimin- 
ishing loans  and  investments  and  cancelmg  mortgages  held  in  Argen- 
tina by  foreigners.  In  previous  years  the  balance  was  not  large 
enough  to  even  pay  the  Argentine  current  debt,  so  the  foreigners 


ECONOMIC  POSITIOI^   OF   ARGENTINA  DURING  THE  WAR.       131 

allowed  their  credit  to  go  toward  further  investments  in  the  Republic. 
The  war  brought  Argentina  a  trade  balance  sufficiently  large  to  pay 
all  its  foreign  current  debts  and  then  leave  a  balance  in  its  favor.  It 
has  become  a  creditor  nation  in  actuality.  However,  this  very  con- 
dition has  been  conducive  to  unworkable  conditions  in  the  exchange 
rates,  which  required  for  solution  methods  new  in  Argentine  history. 

The  increasing  trade  balance  and  the  reluctance  of  the  Allies  to  ship 
gold  to  Argentina  caused  the  exchange  rates  to  soar.  The  par  value 
of  Argentine  exchange  is  in  London  48  to  48i  pence  per  Argentine  gold 
peso  and  in  New  York  is  $0.9648  per  gold  peso.  In  August,  1918, 
the  respective  rates  were  501  pence  and  S0.99J,  and  foreigners  owing 
Argentme  merchants  had  to  pay  these  high  rates.  The  result  was 
an  increase  in  prices,  in  order  to  meet  the  extra  expense,  or  else  a 
diversion  of  foreign  trade  to  other  markets.  This  exchange  situa- 
tion favored  the  Argentine  importer,  but  he  could  not  increase  his 
business  because  of  limited  shipping  facilities. 

In  order  to  save  the  situation  Argentina  made  financial  agreements 
with  the  Allied  Governments.  A  credit  of  £40,000,000  was  given  to 
the  British  and  French  Governments,  from  which  cereals  could  be 
purchased  with  Argentine  money.  The  Argentine  Government  could 
then  draw  on  London  and  Paris  if  the  rate  of  exchange  did  not  exceed 
50d.  and  5.60  francs,  respectively.  If,  however,  the  rate  of  exchange 
was  higher  than  this  figure,  the  Argentine  Government  was  to  allow 
amounts  to  stand  to  her  account.  The  balance  which  remained  was  to 
be  settled  by  the  respective  Governments  in  gold  24  months  after  the 
signature  oi  the  agreement.  A  similar  agreement  for  $40,000,000 
was  made  with  the  united  States.  Later  this  sum  was  increased  to 
$60,000,000.  Merchants  in  the  United  States  were  to  deposit  money 
owed  to  Argentine  firms  with  the  Argentine  ambassador  m  Washing- 
ton, who  placed  the  money  in  current  account  in  the  New  York  Fed- 
eral Reserve  Bank.  The  Bank  of  the  Argentine  Nation,  or  the  Office 
of  Conversion,  was  to  pay  the  Argentine  creditors  by  drawing  against 
the  payments  made  to  the  Ambassador  in  Washington.  No  gold  was 
to  be  shipped  from  the  United  States  until  after  the  signing  of  the 
treaty  of  peace. 

PROBABLE  RETURN  OF  EXCHANGE  TO  NORMAL. 

With  the  return  of  normal  conditions  the  imports  wiU  doubtless 
increase.  Argentina  is  prosperous,  which  means  that  she  has  large 
purchasing  abihty.  The  lack  of  shipping  facilities  has  prevented 
importation  of  many  things  that  the  people  wiU  now  be  glad  to 
purchase.  On  the  other  hand,  it  is  not  probable  that  the  inflated  war 
values  of  Argentine  exports  wiU  continue  indefinitely.  Both  the 
increase  in  imports  and  the  decrease  in  value  of  exports  wiU  tend  to 
lessen  the  large  balance  of  trade  in  Argentina's  favor,  and  this  wiU 
tend  to  bring  exchange  back  to  its  pre-war  level. 


BIBLIOGRAPHY. 

Publications  which  were  used  in  the  preparation  of  this  report  on  Argentina  are  marked  with  an 

asterisic  (*). 

A  bibliography  of  publications  on  Argentina  which  are  found  in  the  libraries  of 
the  Bureau  of  Foreign  and  Domestic  Commerce  and  the  Pan  American  Unionj 
Washington,  D.  C: 

Almanacs,  Directories,  Encyclopedias,  and  Guides. 

^American  Exporter.  Export  Trade  Directory,  1919-20.  Export  merchants,  manu- 
facturers' export  agents,  foreign  exchange  bankers,  foreign  freight  forwarders, 
steamship  lines,  foreign  consuls,  etc.,  in  principal  ports  of  the  United  States. 
(Johnston  Export  Publishing  Co.,  17  Battery  Place,  New  York;  branches  in  Boston, 
Philadelphia,  Cleveland,  Detroit,  Chicago,  St.  Louis.) 
American  Travel^  and  Hotel  Directory.  Latin  American  edition.  1918  (fourth) 
edition.  Copyrighted  in  the  United  States  and  Canada  by  the  Independent  Print- 
ing Companies  of  the  United  States,  Washington,  D.  C.  Compiled  under  the  direc- 
tion of  Harold  W.  Phillips;  98  pages.    Argentine  Republic,  pages  17-21. 

*Anuario  de  la  America  Latina,  1914.  General  information  of  the  imports  and  ex- 
ports, industries,  agriculture,  live  stock,  and  mineral  production,  etc.,  of  the 
Americas.  Written  in  Spanish;  1944  pages.  ("Anuarios  Bailly-Bailliere  y  Riera 
Reunidos. "  Offices:  Consejo  de  Ciento,  240,  Barcelona,  Spain.)  Argentina,  pages 
3-309. 

Anuario  Kraft,  Gran  Guia  General  del  Comercio  y  de  la  Inddstria,  Profesionales  y 
Elemento  Oficial  de  la  Repiiblica  Argentina.     A  classified  directory  of  the  com- 
merce, industry,  professions,  and  official  status  of  the  Argentine  Republic,  1919, 
Written  in  Spanish.     (Proprietor  and  editor,  Guillermo  Kraft.    Address:  Calle 
Espana  151,  Buenos  Aires.) 
Argentine  Republic.     General  list  of  importers,  December,  1918.     On  file  in  the 
Bureau  of  Foreign  and  Domestic  Commerce,  Latin  American  Division,  Washington. 
Argentine  Standard  Directory  and  Buyers'  Guide  for  1916  and  1917.     Index  of  repre- 
sentatives of  foreign  manufacturers  in  Argentina.      435  pages.      (The  Standard 
Directory  Co.,  Lavalle  341,  Buenos  Aires.)    Agents  in  New  Yotk:  Donnell  & 
Palmer,  17  Battery  Place. 
Argentine  Standard  Directory  of  National  and  Foreign  Merchants  and  Manufacturers. 
1919,  eleventh  edition.     (Anuario  Argentine  de  Fabricantes  y  Comerciantes  Naci- 
onales  y  Extranjeros.)    Written  in  Spanish,  French,  and  English.    Branch  office: 
Donnell  and  Palmer,  17  Battery  Place,  New  York. 

^Baedeker  of  the  Argentine  Republic,  by  Albert  B.  Martinez,  containing  maps  and 
plans  of  Argentina,  of  the  town  of  Buenos  Aires,  of  Montevideo,  of  Rosario,  of  the 
railway  lines,  and  numerous  illustrations.  1914  (fourth edition).  R.  Sopena,  print- 
er, Provenza  93,  95,  and  97,  Barcelona,  Spain.  479  pages.  Written  in  English. 
Bank  and  Public  Holidays  Throughout  the  World,  1918.  Guaranty  Trust  Co.  of  New 
York,  140  Broadway,  New  York. 

*En  cyclopedia  of  Latin  America,  1917,  giving  special  information  on  commerce,  in- 
dustry, banking,  finance,  railways,  shipping,  transportation,  communications, 
trade,  tariff,  customs,  and  all  matters  of  commercial  importance.  Editors:  Marrion 
Wilcox  and  George  Edwin  Rines.  (The  Encyclopedia  Americana  Corporation,  27 
William  Street,  New  York.)  887  pages.  Argentina,  pages  162-227. 
English  Standard  Directory  and  Buyers'  Guide  of  Argentina,  1915.  (The  English 
Standard  Directory  Co.,  Sarmiento  478,  Buenos  Aires.  352  pages.)  Written  in 
English. 
Eureka  Argentina  Gula.  A  City  Directory  of  Buenos  Aires.  Written  in  Spanish. 
Proprietors:  Silvestre  L.  Caamano.     Office:     Suipacha  18,  Buenos  Aires. 

^Exporters'  Encyclopedia,  1918-19  (fourteenth  edition),  containing  full  and  authentic 
information  relative  to  shipments  for  every  coimtry  in  the  world.  (The  Exporters' 
Encyclopedia  Co.,  Maritime  Exchange  Building,  78-80  Broad  Street,  New  York.) 
The  Argentine  Republic,  pages  407-433. 

132 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE   WAR.       133 

*Foreigii  Commercial  Guide  of  South  America.  Edited  by  Edward  James  Cattell, 
assisted  by  H.  S.  Morrison  and  A.  C.  Kauffman.  (Philadelphia  Commercial 
Museum.  Copyright  1903,  1904,  1906  by  the  Philadelphia  Commercial  Museum.) 
Giving  physical  and  political  features,  banks,  postal  and  cable  rates,  trade  centers, 
customs  duties,  commercial  travelers'  licenses,  patents  and  trade-marks,  internal 
communication,  resources,  etc.,  of  Argentina,  pages  2-31. 

*Kelly's  Directory  of  Merchants,  Manufacturers,  and  Shippers  of  the  World.  A  guide 
to  the  export  and  import  shipping  and  manufacturing  industries.  (British,  col- 
onial, and  foreign  trades.)  1918.  Thirty-second  edition,  (Kelly's  Directories, 
Ltd.),  182,  183,  and  184  High  Holbom  London,  W.  C.  1.  Branch  Office,  New 
York:  Kelly  Publishing  Co.,  70  Fifth  Avenue.)  Published  annually. 
Lippincott 's  New  Gazetteer  or  Geographical  Dictionary  of  the  World .  (J.  B .  Lippin- 
cott  Co.,  Philadelphia  and  London,  1916.)    2,105  pages. 

*Port  Directory  of  the  Principal  Foreign  Ports,  1911.     (See  United  States  Government 

publications.  Navy  Department.) 
Thomas'  Register  of  American  Manufacturers.  (Thomas  Publishing  Co.,  New  York. 
October.  1918,  tenth  edition.)  4,200  pages.  A  purchasing  guide  which  aims  to 
list  all  American  manufacturers  and  primary  sources  of  supply  free  of  charge  and 
irrespective  of  advertising  and  subscription  patronage.  For  the  use  of  both  domes- 
tic and  foreign  buyers. 

*Trade  Directory  of  South  America  for  the  Promotion  of  American  Export  Trade. 
Bureau  of  Foreign  and  Domestic  Commerce,  Miscellaneous  Series  No.  13.  (Govern- 
ment Printing  Office,  Washington,  1914.)  428  pages.  Argentina,  pages  25-74. 
Out  of  print. 
United  River  Plate  Telephone  Co.  (Ltd.),  May,  1917;  November,  1918.  Official 
telephone  directory.  Written  in  Spanish.  Office:  Avenida  de  Mayo  761,  Buenos 
Aires. 
Universal  Directory  of  Railway  Officials,  1918  (twenty-fourth  edition).  Compiled 
from  official  sources  under  the  direction  of  S.  R.  Blundstone,  editor  of  the  Railway 
Engineer.  (The  Directory  Publishing  Company  (Ltd.),  15  Farringdon  Avenue, 
E.  C.  4.)    645  pages.    Argentina,  pages  365-372. 

*World  Almanac  and  Encyclopedia,  1919.  Issued  by  the  Press  Publishing  Co., 
Pulitzer  Building,  New  York.  Copyright  1918.  944  pages.  Argentina,  pages 
371  and  449. 

Argentine  Publications, 
daily  newspapers,  buenos  aires. 
In  Spanish. 

*La  Prensa,  Avenida  de  Mayo  567;  morning  daily,  established  1869;  16  to  24  pages; 

17^  by  24  inches ;  circulation,  165, 000,    Foreign  subscription  price,  $27  per  annum, 

advertising  rates,  $3.55  to  $6.70  per  inch. 
La  Nacion,  San  Martin  344;  morning  daily;  established  1870;  16  to  24  pages,  17^ 

by  26  inches;  circulation,  135,000.    Foreign  subscription  price,  $24  per  annum; 

advertising  rates,  $2.15  to  $12.90  per  inch. 
La  Razon,  Avenida  de  Mayo  760;  afternoon  daily;  established  1904;  10  to  16  pages, 

17^  by  26  inches;  circulation,  50,000.    Foreign  subscription  price,  $20  per  annxun; 

advertising  rates,  $1.60  to  $3.70  per  inch. 

In  English. 

The  Standard,  Rivadavia  835;  morning  daily;  in  English;  established  1860;  8  to  16 

pages,  16  by  23  inches;  circulation,  5,500.    Foreign  subscription  price,  $19.44  per 

annum;  advertising  rates,  $1.44  per  inch. 
The  Buenos  Aires  Herald,  Corrientes  670;  morning  daily;  in  English;  established 

1880;  12  pages,  17^  by  22^  inches;  circulation,  4,500.    Foreign  subscription  price, 

$16.32  per  annum;  advertising  rates,  $0.72  per  inch. 
Special  New  Year  Number.    Dedicated  to  the  present  and  future  commercial 

interests  of  the  allied  nations  in  Argentina,  January,  1919.    (G.  Leonard  D.  Jones, 

B.  A.,  Buenos  Aires.)    192  pages;  illustrations. 

GOVERNMENT  PUBLICATIONS    (OFFICIAL). 

*Anuario  del  Comercio  Exterior  de  la  Repiiblica  Argentina.  Direcci6a  General  de 
Estadlstica  de  la  Nacion.  (Talleres  Grdficos  de  L.  J.  Rosso  y  Cia.,  Belgrano  475. 
Last  edition  1918.)  Showing  principally  Argentine  imports  and  exports  up  to 
July  1,  1918.    Boletln  No.  178,  contains  statistics  for  the  first  six  months  of  1918. 


134       ECONOMIC  POSITION"  OF  ARGENTINA  DURING  THE  WAR. 

^Argentine  International  Trade,  1914-1915.  Department  of  Agriculture.  A  few 
figures  on  its  development.  No.  8.  Direction  General  of  Commerce  and  Industry. 
(Department  of  Agriculture  Printing  Office,  Buenos  Aires,  1915;  64  pages;  1916, 
61  pages.) 

^Argentine  Republic.  Argentine  Commission  at  the  Panama-Pacific  Exposition, 
San  Francisco,  1915.  Descriptive  of  the  growth  and  position  of  Argentina. 
88  pages. 

*Bunge,  Alejandro  E.  (Director  General  of  Statistics  of  Argentina.)  Riqueza  y  Renta 
de  la  Argentina,  su  Distribucion  y  su  Capacidad  Contributiva,  1917.  (Agenda 
General  de  Librerfa  y  Publicaciones,  Calle  Rivadavia  1573.)    One  volume. 

*Memoria  del  Departamento  de  Hacienda,  1917.  (Talleres  Grdficos  Argentinos  de 
L.J.  Rosso  yCia.,  471  Belgrano,  1918,  Buenos  Aires.)  A  yearly  publication  of 
the  Treasury  Department  of  Argentina. 

^Northern  Patagonia — Character  and  Resources.  Ministry  of  Public  Works,  Bureau 
of  Railways,  Argentine  Republic.  Text  and  maps  by  the  Comisi6n  de  Estudios 
Hidrologicos,  Bailey  Willis,  director,  1911-1914.  Volume  I,  A  Study  of  the 
Elements  of  Development  in  the  Region  Tributary  to  the  National  Railway  from 
Port  San  Antonio  to  Lago  Nahuel  Huapi  and  the  extension  to  Valdivia,  Chile, 
including  the  Andean  Lake  district.    464  pages. 

SPECIAL  PUBLICATIONS. 

*Argentina  Commercially  Considered,  1918.  (Syren  &  Shipping  (Ltd.),  91-93  Lead- 
enhall,  London,  E.  C.  3.)  New  York  Agents:  147  W.  Eighty-second  Street. 
106  pages. 

*Tomquist,  Carlos  A. ,  Balance  of  Payments  of  the  Argentine  Republic  for  the  Economic 
Year  1916-1917.     (Carbone  &  Reyes,  San  Martin  85,  1918.)    41  pages. 

*Tomquist,  Ernesto  &  Co.  (Ltd.),  Buenos  Aires.  Reports  140-143,  Business  Condi- 
tions in  Argentina.     (Report  No.  143  written  December  30,  1918.    29  pages.) 

WEEKLY  AND   MONTHLY   PUBLICATIONS. 

Caras  y  Caretas,  Chacabuco  151-5;  illustrated  weekly;  established  1897;  100  to  120 
pages,  7  by  10^  inches,  printed  on  halftone  news  and  coated  book;  circulation, 
90,000.  Foreign  subscription  price,  $8  per  annum;  advertising  rates,  quarter  page 
$46.32  to  $67.55,  half  page  $106.15  to  $127.38,  full  page  $159.22  to  $191.07.  Printed 
by  Caras  y  Caretas,  Buenos  Aires. 
Mundo  Argentine,  Chacabuco  685;  illustrated  weekly;  established  1910;  24  pages, 
10^  by  14^  inches,  printed  on  halftone  news  and  coated  book;  circulation,  115,000. 
Foreign  subscription  price,  $3  per  annum;  advertising  rates,  $6.05  to  $8.60  per  inch 
to  $396  per  page.    Printed  by  Sue.  de  Ricardo  Radaelli,  Buenos  Aires. 

*Review  of  the  River  Plate.  Weekly;  established  1891.  (Danvers  &  Co.,  Calle 
Bartolome  Mitre  427,  Buenos  Aires.  New  York  agents:  Donnell  &  Palmer,  White- 
hall Building,  17  Battery  Place.)  Price,  $24  paper,  post  free.  Gives  authentic 
information  regarding  commerce,  industry,  and  finance,  and  weekly  reports  on 
cereals,  wool,  and  meat. 

*Revista  de  Economla  y  Finanzas,  Avenida  de  Mayo  760;  commercial  bimonthly; 
established  1911;  24  pages,  8^  by  12  inches;  circulation,  5,000.  Foreign  subscrip- 
tion price,  $8  per  annum;  advertising  rates,  $40  per  page,  per  month.  Buenos 
Aires. 

*South  American.  A  monthly  journal  for  all  interested  in  Latin  American  affairs. 
(South  American  Publishiiig  Co.  (Inc.),  61  Broadway,  New  York.)  Price,  25 
cents;  by  the  year,  $2.50;  foreign,  $3. 

*Trade  Gazette.  Monthly  publication.  (Official  international  organ  of  the  British 
and  Latin  American  Chamber  of  Commerce.  English,  Spanish,  and  Portuguese 
editions,  London.)  (Argentina — "Progress  and  Possibilities,"  Vol.  I,  No.  5, 
October,  1917,  pagfes  18-20.) 
(A  complete  list  of  Argentine  daily,  weekly,  bimonthly,  and  monthly  publications 
may  be  found  in  Special  Agents  Series  No.  163,  published  by  the  Bureau  of  Foreign 
and  Domestic  Commerce,  Washington.) 

*Year  Book,  Argentine.    (See  Year  books.) 

Atlases. 

*Century  Atlas  of  the  World.     (The  Century  Co.,  New  York,  1914.)    431  pages. 
Cram's  Modern  Reference  Atlas.  The  United  States  and  World.    A  complete  and 
comprehensive  index  of  all  loreign  countries.     Facts  carefully  compiled  from 
latest  reliable  official  information.     (George  F.  Cram  Co.,  130  Fulton  Street,  New 
York;  107  N.  Market  Street,  Chicago,  1917.) 


ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR.       135 

Donnelley 'a  National  Classified  Telephone  Directory  and  Buyers'  Guide;  *'The 
National  Red  Book."  February,  1918.  Issued  semiannually.  (The  Reuben  H. 
Donnelley  Corporation,  227  Fulton  Street,  New  York;  633  Plymouth  Court, 
Chicago.)    1027  pages. 

*New  Mercantile  Marine  Atlas.  A  series  of  35  plates  containing  over  200  charts  and 
plans.  With  tables  of  10,000  distances  between  ports,  national  and  commercial 
flags,  cable  and  wireless  telegraphy  charts,  with  list  of  wireless  stations,  lists  of 
United  States  and  British  consulates,  and  complete  index  of  20,000  ports,  etc. 
Edited  b^r  George  Philip,  F.  R.  G.  S.  (C.  S.  Hammond  &  Co.,  New  York,  1918; 
sixth  edition.) 

*Rand  McNallv  International  Atlas  of  the  World.  Containing  large-scale  colored 
maps  of  each  State,  Territory,  and  outlining  possessions  of  every  country  in  the 
world ;  each  map  accompanied  by  a  page  of  letter  press,  covering  area,  population, 
resources,  industries,  climates,  etc.,  of  each  State  or  country.  A  ready  reference 
index  on  the  margin  of  each  map.  (Rand  McNally  &  Co. ,  Chicago  and  New  York, 
1915.)    329  pages. 

*Rand  McNally  &  Co.'s  New  Imperial  Atlas  of  the  World.  New  official  census.  A 
ready-reference  marginal  index.  (Rand  McNally  &  Co.,  Chicago  and  New  York, 
1917.) 

Pan  American  Union  Publications. 

Bulletin  of  the  Pan  American  Union: 
(An  illustrated  monthly  magazine . )  Carefully  illustrated  with  halftone  engravings, 
printed  on  high-class  paper,  equally  suited  to  the  library  table  or  business  desk, 
giving  in  attractive,  readable,  and  reliable  form  that  class  of  information,  des- 
criptive, commercial,  general,  and  specific,  which  is  desired  by  all  classes  of 
persons  interested  in  Pan  American  process  and  development.  It  is  published 
monthly  in  four  editions,  one  entirely  m  English  for  circulation  in  the  United 
States  and  other  English-speaking  countries,  the  others  in  Spanish,  Portuguese, 
and  French  for  circulation  in  Latin  America,  Europe,  etc. 
Subscription  rates.  Bulletin  of  the  Pan  American  Union: 

English  edition,  in  all  countries  of  the  Pan  American  Union,  $2.50  per  year. 
Spanish  edition,  in  all  countries  of  the  Pan  American  Union,  $2  per  year. 
Portuguese  edition,  in  all  countries  of  the  Pan  American  Union,  $1.50 

per  year. 
French  edition,  in  all  countries  of  the  Pan  American  Union,  75  cents  per 

year. 
All  four  editions,  in  all  countries  of  the  Pan  American  Union,  $5.25  per 

year. 
An  additional  charge  of  75  cents  per  year  on  each  edition  for  subBcriptiona 
in  countries  outside  the  Pan  American  Union. 
Mining  and  tariff  laws: 
22.  Argentine  Tariff  Law,  English  translation  edited  and  published  by  the  Pan 
American  Union,  February,  1911,  price,  25  cents. 
For  free  distribution  (under  certain  conditions): 
The  Pan  American  Union  has  for  free  distribution  a  limited  supply  of  the  following 
publications;  but  in  view  of  the  overwhelming  demand  for  many  of  them  and  the 
cost  of  printing,  it  has  been  found  necessary  to  make  a  new  regulation,  that  all 
requests  for  such  matter  must  be  made  through,  or  with  the  approval  of,  a  United 
States  Senator  or  Member  of  Congress,  except  in  the  case  or^ applications  from 
foreign  countries,  which  should  be  made  through  the  embassies  or  legations  in 
Washington  or  through  the  home  foreign  offices.    Requests  should  be  made  only 
for  those  publications  that  are  absolutely  needed,  as  the  number  of  publications 
that  may  oe  sent  to  any  one  applicant  is  restricted. 
Bibliographical  Bulletins: 
21.  Latin  American  History  andDescription.    List  of  books  in  the  Columbus  Memo- 
rial Library  of  the  Pan  American  Union.    November  1,  1907.    98  pages,  8°. 

Same.    Supplement  No.  1.    Novemberl,1907,toJuly8, 1909,34pages,8°. 

Same.    Supplement  No.  2.    July  9,  1909,  to  June  1,  1914,  136  pages. 

General  data: 
165.  Latin  American  Civilization,  A  Glance  at.  By  Francisco  J.  Yanes,  Assistant 
Director  and  Secretary  of  the  Governing  Board  of  the  Pan  American  Union. 
Reprinted  from  the  Journal  oji  Race  Development,  April,  1914.  20  pages. 
161.  Latin  American,  Contrasts  in  the  Development  of  Nationality  in  the  Angloand. 
Address  delivered  by  Frederico  A.  Pezet,  ex-minister  of  Peru,  before  the 
Anthropological  Society.    16  pages. 


136       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

232.  Latin  American  Porei^  Trade  as  Affected  by  the  War.    12  pages;  diagrams. 

Reprinted  from  the  Bulletin  of  the  Pan  American  Union,  January,  1918. 
242.  Latin  American  Trade.    A  Comparative  Survey.    20  pages  reprinted  from 

Bulletin  of  the  Pan  American  Union,  December,  1918. 
204.  Latin  American  Trade.    Foreign  Trade  in  1917.    A  general  survey. 
Maps: 
145.  Latin  America,  Showing  Railroads  of,  in  Operation  and  under  Construction. 
Prepared  by  the  Pan  American  Union.    1913.     Size  16  by  21  inches. 
Miscellaneous: 
Rosario,  Argentina's  Second  City.    Reprinted  from  the  August  (1918)  Bulletin 
of  the  Pan  American  Union. 
Special  data  by  countries: 

72.  {a)  Argentina.    General  descriptive  data.    Illustrated. 
128.  (a)  Argentina,  Commerce  of,  for  1917. 

85.  Aigentine  International  Trade.    A  Few  Figures  on  Its  Development.    Com- 
piled by  Division  of  Commerce  and  Industry.    64  pages.     Buenos  Aires, 
1915. 
141.  Argentine  Republic,  Land  in  the.     Including  homestead  law  of  September 

28, 1917. 
404^  El  "Veraneo"  en  la  Argentina.    12  pages;  illustrated.     (In  Spanish.)  • 
405.  The  Argentine  Universities.    8  pages;  illustrated.     (In  Spanish.) 
443.  General  descriptive  data,  Argentina. 

(A  complete  "list  of  publications"  is  published  and  distributed  by  the  Pan  Apieri- 
can  Union,  Washington,  D.  C.) 

Reference  Books. 

Aughinbaugh,  W.  E.,  Md.,  LV.  B.,  LV.  M.,  "Selling  Latin  America."    (Small, 

Maynard  &  Co.,  Boston,  1915).    408  pages. 
Filsinger,  Ernest  B.,  "Exporting  to  Latin  America."    A  handbook  for  merchants, 

manufacturers,  and  exporters.    (D.  Appleton  &  Co.,  New  York,  1916.)    565  pages. 
Fraser,  John  Foster,  "The  Amazing  Argentine."    With  48  plates  from  photographs. 

(Funk  &Wagiialls  Co.,  New  York.)    291pa§es. 
*Halsey,  Frederic  M.,  "Railway  Expansion  in  Latin  America."    The  Argentine 

Republic,  pages  7-31.    (The  Moody  Magazine  &  Book  Co.,  1916.)    170  pages. 
*Halsey,  Frederic  M.,  "The  Railways  of  South  and  Central  America."    A  manual 

containing  statistics  and  other  information  concerning  the  information  about  the 

important  railways  of  South  and  Central  America,  Mexico,  and  the  West  Indies. 

1914  edition.    (Francis  Emory  Fitch  (Inc.),  publishers  to  the  American  Banker, 

47  Broad  Street,  New  York.)    183  pages.    Argentina,  pages  9-34. 
*Hammefton,  J.  A.,  "The  Real  Argentine."    With  numerous  illustrations.    (Dodd, 

Mead  &  Co.,  New  York,  1916.)    453  pages. 
Hirst,  W.  A.,  "Argentina."    With  an  introduction  by  Martin  Hume,  M.  A.    With 

a  map  and  64  illustrations.     (T.  Fisher  Unwin,  Adelphi  Terrace,  London.    First 

edition,  1910.    Fourth  impression,  1914.)    306  pages. 
Koebel,  W.  H.,  "British  Exploits  in  South  America."    A  history  of  British  activi- 
ties in  exploration,  military  adventure,  diplomacy,  science,  and  trade,  in  Latin 

America.    Illustrated  with  photographs  and  old  prints.    (The  Century  Co.,  New 

York,  1917.)    587  pages. 
^Martinez,  Albert  B.  and  Lewandowski,  Maurice,  "The  Argentine  of  the  Twentieth 

Century."    (T.  Fisher  Unwin,  Adelphi  Terrace,  London,  1915.)    376  pages. 
*Mills,  George  J.,  "Argentina."    With  introduction  by  W.  H.  Koebel.    Physical 

features,  natural  resources,  means  of  communication,  manufactures,  and  industrial 

development.    (D.  Appleton  &  Co.,  New  York,  1914.)    209  pages. 
*^Ross,  Gordon,  "Argentina  and  Uruguay."    With  12  illustrations,  4  diagrams,  and  a 

map.    (Macmillan  Co.,  New  York,  1916.)    308  pages. 
Stephens,  Henry,  A.  B.,  Ph.  D.,  "Illustrated  Descriptive  Argentina."    Containing 

numerous  illustrations.    (Knickerbocker  Press,  New  York,  1917.)    763  pages. 
Todd,  John  A.,  B.  L.,  "The  World's  Cotton  Crops."    With  32  page  illustrations  and 

16  maps  and  diagrams.     (A.  &  C.  Black  (Ltd.),  4,  5,  and  6  Soho  Square,  London, 

W.,1915.)    460  pages. 
*" Twentieth  Century  Impressions  of  Argentina."     Its  historjr,  people,  commerce, 

industries,  and  resources.     (Lloyd's  Greater  Britain  Publishijig  Co.  (Ltd.),  1911.) 

Niuuerous  illustrations.    850  pages. 


ECONOMIC  POSITION  OF  ARGENTINA  DURING  THE  WAR.       137 
United  States  Government  Publications  (Official). 

^Agriculture  Department: 

Yearbook  of  the  United  States  Department  of  Agriculture,  1918.     (Government 
Printing  Office,  Washington,  1918.)    853  pages. 
Commerce  Department: 
Bureau  of  Foreign  and  Domestic  Commerce  publications: 
The  special  publications  of  the  bureau  are  divided  into  four  groups:  (1)  Special 
Agents  Series,  which  comprises  monographs  on  special  industries  and  special 
phases  of  commerce,  prepared  by  the  special  agents;  (2)  Special  Consular 
Reports;  (3)  Foreign  Tariff  Series;  (4)  Miscellaneous  Series. 
The  bulk  of  the  information  relating  to  foreign  markets  for  American  goods  is 
obtained  from  the  Consular  Service,  the  traveling  special  agents,  and  the 
commercial  attaches.    The  statistics  of  American  trade  with  foreign  countries 
are  collected  at  American  customhouses  in  cooperation  with  the  Treasury- 
Department. 
Copies  of  the  publications  listed  may  usually  be  obtained  for  the  price  stated 
by  writ.ing  to  the  district  offices  of  the  bureau  or  to  the  Superintendent  of 
Documents,  Government  Printing  Office,  Washington,  D.  C.    The  cooperative 
offices  have  copies  for  those  who  call  in  person,  but  do  not  sell  by  mail. 
Branch  offices  of  the  Bureau  of  Foreign  and  Domestic  Commerce: 
District  offices : 
New  York,  734  United  States  Customhouse. 
Boston,  1801  United  States  Customhouse. 
Chicago,  1424  First  National  Bank  Building. 
St.  Louis,  402  Third  National  Bank  Building. 
New  Orleans,  1020  Hibernia  Bank  Building. 
San  Francisco,  307  United  States  Customhouse. 
Seattle,  848  Henry  Building. 
Coopera  tive  offices : 
Cincinnati,  Chamber  of  Commerce. 
Cleveland,  Chamber  of  Commerce. 
Los  Angeles,  Chamber  of  Commerce. 
Philadelphia,  Chamber  of  Commerce. 
Portland,  Oreg.,  Chamber  of  Commerce. 
Dayton,  Chamber  of  Commerce. 
Classification  by  subjects — 
Agricultural  implements  and  machinery: 
Markets  for  Agricultural   Implements  and  Machinery  in   Argentina,    by 
Frank  H.  von  Motz.    Special  Agents  Series  No.  125;  1916;  86  pages^ 
Price,  10  cents. 
Banking  and  credits: 
Banking  and  Credit  in  Argentina,  Brazil,  Chile,  and  Peru,  by  E.  N.  Hurley. 
Special  Agents  Series  No.  90;  1914;  72  pages.    A  study  of  the  relations  of 
banks  and  banking  to  trade  in  South  America.    Price,  10  cents. 
Financial  Developments  in  South  American  Countries,  by  William  H. 

Lough.    Special  Agents  Series  No.  103;  1915;  42  pages.    Price,  5  cents.  ^ 
Banking  Opportunities  in  South  America,  by  William  H.  Lough.    Special 
Agents  Series  No.  106;  1915;  156  pages.    A  report  on  the  opportunities  in 
in  South  America  for  establishing  American  banking  institutions,  now 
that  our  banks  are  permitted  by  law  to  have  branches  in  foreign  countries. 
Price,  20  cents. 
Canned  goods: 
*South  American  Trade  in  Canned  Goods,  by  E.  A.  Thayer.    Special  Agents 

Series  No.  87;  1914;  36  pages.    Out  of  print. 
Coal: 
Coal  Trade  in  Latin  America.    Special  Consular  Reports  No.  43,  part  1; 
1910;  32  pages.    Contains  reports  on  the  trade  in  Mexico,  the  West  Indies, 
and  Central  and  South  America,  presenting  information  as  to  volume  and 
values  of  trade,  sources  of  supplies,  prices,  methods  of  handling,  etc. 
Price,  5  cents. 
Commerce  Reports: 
Commerce  Reports  (daily  consular  and  trade  reports),  published  daily,  with 
supplements  containing  annual  reviews  of  trade  by  the  consuls  covering 
every  country  of  the  world.    Price,  $2.50  per  year,  or  $6  for  the  four 
quarterly  volumes  bound  in  cloth  with  index,  but  without  supplements. 
Single  copies  of  the  daily,  5  cents. 


138       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR, 

Commerce  Department — Continued. 
Bureau  of  Foreign  and  Domestic  Commerce  publications — Continued. 
Classification  by  subjects— Continued. 
Cooking  fats: 
Cooking  Fats  in  South  America.     Special  Consular  Reports  No.  67;  1915;  15 
pages.     Review  of  the  South  American  trade  in  such  cooking  fats  as  lard, 
tallow,  and  vegetable  oils.    Price,  5  cents. 
Cotton  and  cotton  goods: 
Cotton  Goods  in  Latin  America,  Part  III— Argentina,  Uruguay,  and  Paraguay, 
by  W.  A.  Graham  Clark.    Special  Agents  Series  No.  40;  1910;  52  pages. 
Exhausted. 
Drugs,  patent  medicines,  etc.: 
South  American  Markets  for  Drug  Products,  Patent  and  Proprietary  Medi- 
cines, Surgical  Instruments,  and  Dental  Supplies,  by  E.  A.  Thayer.    Spe- 
cial Agents  Series  No.  85;  1914;  75  pages.     Price,  10  cents. 
Fruit: 
South  American  Markets  for  Fresh  Fruits,  by  Walter  Fischer.     Special 
Agents  Series  No.  131;  1917;  163  pages.     Countries  covered  are  Brazil, 
Argentina,  Uruguay,  Paraguay,  Peru,  and  Chile.    Price,  25  cents. 
South  American  Markets  for  Dried   Fruits,  by  Walter  Fischer.      Special 
Agents  Series  No.  148;  1917;  35  pages.    Price,  5  cents. 
General  trade  conditions: 
Trade  Development  in  Argentina,  by  James  Davenport  Whelpley.     Special 
Agents  Series  No.  43;  1911;  94  pages.     Devoted  principally  to  two  sub- 
jects— sea-transport  service  of  Argentina  and  the  meat  production  and 
export.     To  this  are  added  notes  on  the  market  for  various  American 
products  and  on  the  Argentine  Centennial  Exposition  and  the  progress  of 
agriculture.    Price,  10  cents. 
South  America  as  an  Export  Field,  by  Otto  Wilson.     Special  Agents  Series 
No.  81;  1914;  216  pages.     Gives  in  condensed  form  such  information  as  to 
the  character,  extent,  resources,  and  trade  of  South  American  countries  as 
will  enable  manufacturers  and  exporters  not  familiar  with  conditions  in 
that  field  to  determine,  in  part,  the  most  favorable  markets  for  their  goods. 
Price,  25  cents. 
Consular  Recommendations  on  South  American  Trade.    Miscellaneous  Series 
No.  20;  1914;  29  pages.     Reprint  of  articles  first  appearing  in  the  Daily 
Consular  and  Trade  Reports.     Embodies  chief  recommendations  of  consular 
cflficers  as  to  the  methods  best  adapted  to  increasing  the  trade  of  the 
United  States  in  South  America.     Price,  5  cents. 
Statements  on  the  Latin  American  Trade  Situation.     Miscellaneous  Series 
No.  18;  1914;  39  pages.     A  report  on  the  statements  made  by  representa- 
tives of  Latin  American  countries  at  a  conference  held  before  the  Secre- 
tary of  State  and  the  Secretary  of  Commerce,  at  Washington,  D.  C,  Sep- 
tember 10, 1914,  dealing  especially  with  unusual  situations  arising  from  the 
outbreak  of  war  in  Europe.    Price,  5  cents. 
Hardware: 
Markets  for  American  Hardware  in  Argentina,  Uruguay,  and  Paraguay,  by 
Albert  Hale.     Miscellaneous  Series  No.  43;  1916;  64  pages.     Price,  10 
cents. 
Investments: 
Investments  in  Latin  America  and  British  West  Indies,  by  Frederic  M. 
Halsey.    Special  Agents  Series  No.  169;  1918.    Price,  50  cents. 
Lumber: 
Lumber  Markets  of  the  East  Coast  of  South  America,  by  R.  E.  Simmons. 
Special  Agents  Series  No.  112;  1916;  121  pages.     Price,  25  cents. 
Machinery  and  machine  tools: 
Machine  Tools  in  Latin  America.     Special  consular  reports  No.  58;  1913;  32 

pages.    Price,  5  cents. 
Markets  for  Machinery  and  Machine  Tools  in  Argentina,  by  J.  A.  Massel. 
Special  Agents  Series  No.  116;  1916;  64  pages.     Price,  20  cents. 
Motor  vehicles: 

Argentine  Market  for  Motor  Vehicles,  by  David  Beecroft.     Miscellaneous 
Series  No.  62;  1917;  27  pages.     Price,  5  cents. 
Paper: 
Paper,  Paper  Products,  and  Printing  Machinery  in  Argentina,  Uruguay,  and 
Paraguay,  by  R.  S.  Barrett.     Special  Agents  Series  No.  163;  1918;  165 
pages.    Price,  20  cents. 


ECONOMIC   POSITION  OF  ARGENTINA  DURING  THE   WAR.       139 

Commerce  Department — Continued. 

Bureau  of  Foreign  and  Domestic  Commerce  publications — Continued. 
Classification  by  subjects— Continued. 
Shoe  and  leather  trade: 
Shoe  and  Leather  Trade  in  Argentina,  Chile,  Peru,  and  Uruguay,  by  .Arthur 
B.  Butman.     Special  Agents  Series  No.  37;  1910;  72  pages.     Out  of  print. 
Boots  and  Shoes,  Leather,  and  Supplies  in  Argentina,  Uruguay,  and  Para- 
guay, by  Herman  G.  Brock.     Special  Agents  Series  No.  177;  1919;  182 
pages.     Price,  25  cents. 
Soap: 
South  American  Market  for  Soap.     Special  Consular  Reports  No.  66;  1915; 
16  pages.     Price,  5  cents. 
Tanning  materials: 
Tanning  Materials  of  Latin  America,  by  Thomas  H.  Norton.     Special  Agents 
Series  No.  165;  1918;  32  pages.     Surveys  the  tannin-bearing  plants  and 
trees  in  South  and  Central  America  and  Mexico,  and  reveals  the  resources 
these  countries,  thus  far  only  slightly  exploited ,  for  meeting  the  increasing 
demands  for  tanning  materials.     Price,  5  cents. 
Tariffs: 
The  following  publications  concerning  the  tariffs  of  foreign  countries  may  be 
had  from  the  Superintendent  of  Documents  and  the  district  and  cooper- 
ative offices  of  the  Bureau  of  Foreign  and  Domestic  Commerce  at  the  prices 
indicated .    Tariffs,  of  course,  are  subj  ect  to  more  or  less  frequent  changes, 
and  old  publications  on  the  subject  are  of  little  value.    This  list  includes 
only  such  bulletins  as  were  still  authoritative  when  the  catalogue  was  sent 
to  press. 
Tariff  Series: 
No.  24.  Consular  Regulations  of  Foreign  Countries:  Canada  and  Latin  America 

(revised  edition);  1915.    Price,  10  cents. 
No.  31.  Registration  of  Trade-marks  in  Latin  America;  1916.    Free. 
No.  32.  Import  Duties  on  Textiles  in  South  America;  Part  I — Argentina;  1916. 

Price,  5  cents. 
No.  34.  Tariff  Systems  of  South  American  Countries.    1916.    Price,  25  cents. 
No.  35.  Commercial  Travelers  in  Latin  America;  1916.     Price,  10  cents. 
Wearing  apparel: 
Wearing  Apparel  in  Argentina,  by  Lew  B.  Clark.    Miscellaneous  ISeries  No. 
68;  1918;  158  pages.     Price,  20  cents. 
Miscellaneous: 

*Foreign  Commerce  and  Navigation  of  the  United  States.     By  articles  and 
countries.    Containing  summary,  tables  of  foreign  commerce  and  sta- 
tistical  tables    of    foreign   commerce    of   the   United    States.     Issued 
annually  by  the  Bureau  of  Foreign  and  Domestic  Commerce. 
*Navy  Department,  Port  Directory  of  the  Principal  Foreign  Ports.     Office  of  Naval 
Intelligence,  1911.     (Government  Printing  Office,  Washington,  1911.) 
Treasury  Department: 

^Annual  Report  of  the  Director  of  the  Mint  for  the  Fiscal  Year  ended  June  30, 1918, 
including  report  on  the  Production  of  the  Precious  Metals  during  the  Calendar 
Year  1917.  (Government  Printing  Office,  Washington,  1918.)  259  pages.  Argen- 
tina, pages  171-174,  244. 
^Proceedings  of  the  First  Pan  American  Financial  Conference  Convened  by  A.uthor- 
ity  of  the  Congress  of  the  United  States  under  the  direction  of  Hon.  William  G. 
McAdoo,  Secretary  of  the  Treasury.  Washington,  May  24-29, 1915.  Published 
by  the  Government  Printing  Office,  Washington,  1915.    744  pages. 

Year  Books. 

^American  Year  Book,  1918.  Edited  by  Francis  G.  Wickware,  B.  A.,  B.  Sc,  with 
cooperation  of  a  supervisory  board  representing  National  Learned  Societies  (D. 
Appleton  &  Co.,  New  York  and  London,  1919).    850  pages.    Argentina,  page  123. 

^Argentine  Year  Book^  1915-1916  (tenth)  edition.  (Robert  Grant  &  Co.,  Calle  Can- 
gallo542,  Buenos  Aires),  U.  S.  A.  Agents:  Donnell  &  Palmer,  Whitehall  Building, 
17  Battery  Place,  New  York.    406  pages. 

*Latin  American  Year  Book  for  Investors  and  Merchants  for  1913-1919.  (Criterion 
Newspaper  Syndicate  (Inc.),  New  York.)  1919  edition  contains  552  pages;  Argen- 
tina, pages  9-66. 


140       ECONOMIC  POSITION   OF  ARGENTINA  DURING  THE  WAR. 

*'' Shipping  World"  Year  Book  and  Port  Directory:  A  Desk  Manual  in  Trade,  Com- 
merce, and  Navigation.  Edited  by  Major  Evan  Rowland  Jones,  1913.  (The ' '  Ship- 
ping World '^  Offices,  Effingham  House,  Arundel  Street,  Strand,  W.  C.)  1848 
pages.    Argentina,  pages  1077-1081. 

^South  American  Year  Book  and  Directory  (incorporating  the  South  American  Rail- 
way Year  Book,  South  American  Annual,  and  South  American  Blue  Book).  1915. 
(Louis  Gassier  Co.  (Ltd.),  33Bedford  Street,  Strand,  London,  W.  C.)  Gi\ing  railway, 
political,  and  general  information. 

*Statesman's  Year  Book,  1918  (fifty-fifth  annual  publication).  Statistical  and  histor- 
ical annual  of  the  States  of  the  world  for  the  year  1918.  (Macmillan  and  Co.  (Ltd.), 
St.  Martin's  Street,  London.)    1488  pages.    Argentina,  pages  638-648. 

*Stock  Exchange  Year  Book  for  1916.  (Forty-second  edition.)  A  careful  digest  of 
information  relating  to  the  origin,  history,  and  present  position  of  each  of  the  public 
securities  and  joint-stock  companies  known  to  the  markets  of  the  United  Kingdom. 
(Thomas  Skinner  &  Co.,  76-81,  Gresham  House,  Old  Broad  Street,  E.  C,  London.) 
2278  pages. 

^Industrial  Union  of  Argentina:  An  organization  composed  of  the  manufacturers, 
exporters,  and  merchants  of  Argentina  for  the  purpose  of  increasing  the  resources 
of  Argentina.  The  Boletin  de  la  Union  Industrial  Argentina  (Calle  Bolivar,  260) 
is  published  monthly  in  Buenos  Aires  by  this  Union. 


14  DAY  USE 

1   RETURN  TO  DESK  FROM  WHICH  BORROWED 
LOAN  DEPT. 

This  book  is  due  on  the  last  date  stamped  below,  or 

on  the  date  to  which  renewed. 

Renewed  books  are  subject  to  immediate  recall. 


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